ISM index still healthy
The following comments are from the always-insightful, Scott Grannis, Chief Economist at Western Asset Management...
The Institute for Supply Management's index of manufacturing activity in February came in at levels that are solidly consistent with real economic growth of at least 3-4%. Since fourth quarter growth was only 1.6%, growth this quarter is likely to be 5% or better, resulting in an average for the two quarters of 3.5% or so. Export orders were also strong. The prices paid component of the index reflected the continuation of widespread pricing power, with almost two-thirds of respondents reporting paying higher prices.
The Institute for Supply Management's index of manufacturing activity in February came in at levels that are solidly consistent with real economic growth of at least 3-4%. Since fourth quarter growth was only 1.6%, growth this quarter is likely to be 5% or better, resulting in an average for the two quarters of 3.5% or so. Export orders were also strong. The prices paid component of the index reflected the continuation of widespread pricing power, with almost two-thirds of respondents reporting paying higher prices.
posted by David M Gordon | 4:46 PM
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