by Steven Hansen
The ISM Manufacturing survey index (PMI) declined from 54.7 to 52.4 in February 2012 (50 separates manufacturing contraction and expansion). This was disappointing to the market which expected between 54.5 and 54.7.
Econintersect sees the new orders sub-index as having a higher and more precise correlation to recessions and the economy then the PMI overall. Although this subindex declined this month, it remains solidly in expansion territory. The three month trend shows the rate-of-growth is unchanged.
Even the noisy Backlog of Orders -which also declined- remains solidly in expansion territory (backlog growth is an indicator of improving conditions).
Read more: http://econintersect.com/wordpress/?p=19490
The ISM Manufacturing survey index (PMI) declined from 54.7 to 52.4 in February 2012 (50 separates manufacturing contraction and expansion). This was disappointing to the market which expected between 54.5 and 54.7.
Econintersect sees the new orders sub-index as having a higher and more precise correlation to recessions and the economy then the PMI overall. Although this subindex declined this month, it remains solidly in expansion territory. The three month trend shows the rate-of-growth is unchanged.
Even the noisy Backlog of Orders -which also declined- remains solidly in expansion territory (backlog growth is an indicator of improving conditions).
Read more: http://econintersect.com/wordpress/?p=19490
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