Wednesday, August 11, 2010

The Dollar and Manufacturing


With the dollar recent drop, I was thinking it would be a good time to look at the dollar/ISM relationship to see if the dollar's recent drop might lead to an increase in the ISM numbers, and hence, manufacturing. The chart shows the relationship exists sometimes (the two boxed areas) but certainly not at all times. In other words, the exchange rate is a factor at times, but not always.