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
 
  ISM index beats expectations in September
Posted Under: Data Watch • ISM
Supporting Image for Blog Post

 
Implications: Today's reports on manufacturing and construction show absolutely no sign of recession. Not only did the ISM manufacturing index beat consensus expectations, but it climbed to its highest level in three months.  The September index reading of 51.6 shows that growth in the manufacturing sector is accelerating, not declining.  An index level of 51.6 correlates with 3.2% real GDP growth according to the Institute for Supply Management, which publishes the report.  Given recent market volatility and fears of potential defaults in Europe, many regional manufacturing surveys have been beaten down.  But like today's ISM report (and Friday's Chicago PMI), we expect these manufacturing surveys to bounce back, as they often reflect sentiment rather than real business activity during times of uncertainty.  In other news this morning, construction spending increased 1.4% in August, easily beating consensus expectations of a 0.2% decline.  Including revisions to prior months, construction spending was up 1.2%.  The largest gain in August came from state and local construction, particularly high schools and bridges.  Home building rose due to both single-family construction and home improvements.  A gain in commercial construction was led by power plants.

Click here to view the entire report.
Posted on Monday, October 3, 2011 @ 11:58 AM • 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.
 
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.