Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  The ISM Manufacturing Index Increased to 57.1 in July
Posted Under: Data Watch • ISM
Supporting Image for Blog Post

 
Implications: US factories are humming. The ISM Manufacturing index, which measures factory sentiment around the country, rose to 57.1 in July, the highest level in more than three years. The best news in today's report came from the new orders index, which rose to 63.4, the highest reading since the end of last year, and a sign that activity should continue to pick up in the months ahead. According to the Institute for Supply Management, an overall index level of 57.1 is consistent with real GDP growth of 4.6% annually. While yesterday's GDP report came in at a strong 4.0% for Q2, we don't expect the growth rate to remain quite that fast over the remainder of the year. On the inflation front, the prices paid index rose to 59.5 in July from 58.0 in June. Along with broader measures of consumer and producer prices, inflation is starting to show signs of the loose monetary policy of the past several years. The employment index jumped to 58.2 in July, an eight month high and consistent with the gain of 28,000 manufacturing jobs reported in this morning's employment survey. In other news this morning, construction declined 1.8% in June (-0.6% including upward revisions to prior months). The decline in June itself was mostly due to a pullback in government projects (particularly paving roads). In the housing sector, a decline in single-family construction offset further gains in multi-family building. Don't worry about construction, though; it's volatile month-to-month and we expect gains in the year ahead. In addition, during economic expansions construction reports are often revised up in following months.

Click here for PDF version
Posted on Friday, August 1, 2014 @ 12:16 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
Don't Fret the Dip: Fundamentals Are OK
Personal Income and Personal Consumption Both Increased 0.4% in June
Nonfarm Payrolls Increased 209,000 in July
Improving Economy, Weaker Guideposts
The Truth About Full-Time vs. Part-Time Jobs
The First Estimate for Q2 Real GDP Growth 4.0% at an Annual Rate
The Fed’s Massive Power Grab
Tax Reform: The Real Anti-Inversion Solution
New Orders For Durable Goods Increased 0.7% in June
New Single-Family Home Sales Declined 8.1% in June
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.