Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
X •  LinkedIn
  The ISM manufacturing index declined to 50.8 in October
Posted Under: Data Watch • ISM
Supporting Image for Blog Post

Implications: Manufacturing continued to grow in October, although more slowly than the consensus expected. The main reason for the decline in the overall manufacturing index was a drop in the sub-index for inventories to the lowest level in more than a year. The reluctance of manufacturers to accumulate inventories may stifle the growth rate in the short term, but should add to growth in the future. Supporting the case for more rapid growth in coming months was a bounce in the new orders index to 52.4 from 49.6 in September. On the inflation front, the prices paid index fell to 41.0 in October, the lowest level since April 2009. This is a welcome decline but we don't expect it to last. Monetary policy is very loose and the drop in the prices paid index in October resembles the drop in early 2010 that was reversed later that year. In other news this morning, construction spending increased 0.2% in September, but was down 1.5% including revisions to prior months.  The downward revisions to prior months were mainly home improvements.  The gain in construction in September itself was led by home improvements and private hospitals.  Weekly data on chain store sales show no let up by consumers.  Sales are up 3% from a year ago according to the International Council of Shopping Centers and 5.2% according to Redbook Research.

Click here for the full report.
Posted on Tuesday, November 1, 2011 @ 10:35 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.