There is new and encouraging economic data reflected in the two ISM reports issued last Friday and this past Wednesday. Financial economist Fritz Meyer comments that these reports are notable because, of all of the monthly economic data, the ISM’s purchasing managers surveys are probably the broadest and deepest in scope so they provide a pretty good comprehensive snapshot of economic activity. Take a look.
The manufacturing survey at 54.2 is a strong number and its forward-looking new orders component surged to 57.8 – a very encouraging reading.
The non-manufacturing survey – which captures a much broader swath of the economy than does the manufacturing survey – also ticked higher to a very strong 56.0 and its forward-looking new orders component surged to 58.2.
More broadly, as you can see in the Conference Board’s latest reading of coincident and leading economic indicators, both have turned markedly higher in the last six months.
It’s pretty clear from the data that the U.S.’s economic momentum is improving.