Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  The ISM manufacturing index increased to 53.9 in December
Posted Under: Data Watch • ISM

 
Implications: Great reports again today on manufacturing and construction.  December data was stronger than expected and the manufacturing sector has now grown for 29 straight months.  And just in case you still think a double-dip is possible, the new orders index came in at a very strong 57.6 in December.  This was the third consecutive monthly increase, and suggests more growth in manufacturing ahead. The employment index was also a bright spot rising to 55.1, the highest level in 6 months.  This supports our forecast for a 175,000 gain in December private sector payrolls.  The one sub-index that remains weak is inventories.  The reluctance of manufacturers to accumulate inventories may hold back GDP in the short term, but we view this reluctance to build inventories as temporary.  On the inflation front, the prices paid index rose to 47.5 in December. A reading below 50 is a welcome sign, but we don't expect it to last.  Monetary policy is very loose and, in effect, getting looser as the economy accelerates.  In other news this morning, construction increased 1.2% in November (1.1% including a slight downward revision for prior months).  The gain easily beat consensus expectations of 0.5% and was led by home building (both new homes and improvements) and government projects (power plants and bridges).  Commercial construction was unchanged in November.  Given favorable weather for much of the country in December, look for more good construction figures a month from now. 

Click here for a printable version.
Posted on Tuesday, January 3, 2012 @ 11:13 AM • Post Link Share: 
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.
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 © 2022 All rights reserved.