Thursday, October 1, 2020

Happy Every Economic Statistic in the World Day! 4. Manufacturing continued to expand strongly in September


 - by New Deal democrat

This morning’s final economic report is  the ISM manufacturing index for September.

This is a short leading indicator, and the new orders subindex specifically is one of the 10 components of the Index of Leading Indicators.

A neutral reading is 50. The overall index came in at 55.4, and the new orders subindex came in at 60.2:

So while the Index pulled back a little bit from August’s levels, it was still a very strong positive.

Again, this is evidence that the economy “wants” very much to expand smartly in the near future, if only the pandemic can be brought under control.