Today we share a charts on the ISM Purchasing Managers Indexes – both manufacturing and non-manufacturing.
Reminder: These charts come to us compliments of independent economist Fritz Meyer, a seasoned economic and markets analyst whose insights appear regularly on CNBC, Bloomberg TV and the Fox Business Network. Here is what Fritz has to say:
… The big picture takeaway here is that the ISM manufacturing PMI has historically slumped to a reading under 50 as the economy slides into recession. Also, note the historic volatility of manufacturing momentum within the (grey) periods of economic (GDP) expansion, suggesting that the index has also slipped well below 50 even as the economy has not slipped into recession.
…While the ISM non-manufacturing index has only limited history, because its calculation methodology is the same as for the manufacturing index, one might reasonably assume that the ISM non-manufacturing PMI would substantially slump from its present level to a reading under 50 well before the onset of recession.
Clicking on each chart will maximize it in your browser.