Charts of the Week
U. S. ISM Manufacturing Index
Chart of the Week for December 8, 2017 - December 14, 2017
The Institute for Supply Management (ISM) produces the monthly ISM Manufacturing Index (Index), which is based on surveys of more than 300 manufacturing firms. It tracks employment, production inventories, new orders and supplier deliveries and an Index reading above 50 indicates the manufacturing sector is expanding. Economists closely monitor the Index as a leading indicator of GDP growth.
The Index ranged between 54.5 and 60.8 over the last 12 months and has been in expansion territory since September 2016. The November 2017 value of 58.2 continued to show expansion, but was slightly below the consensus expectation. Contributing to growth was higher new orders and production and detractors were lower supplier deliveries and inventories. Exports fell slightly and imports rose, which implies that trade was also a detractor to growth. Economists note the current strong U.S. and Global economies as reasons to believe the Index should perform well in the near term. A falling U.S. dollar should also provide further support to exports and manufacturing as well.
Posted by: sarah_oz@yahoo.com
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