Monday, May 3, 2010

Stat of the Day: ISM Manufactoring Level Suggests 6% GDP Growth

At least that's the number that First Trust quotes from the ISM. The ISM came in at a strong 60.4 which was barely above expectations, but its key to not get caught up in the expectations game sometimes and just absorb the numbers. A number above 60 represents exceptional growth and was last seen in 2004.

It wouldn't surprise us to see this number move on into the mid-60s before peaking out. Especially with new orders rising to 65.7 signaling strong growth ahead. Read the report from First Trust for all the details. The 6% GDP growth is something that the market clearly does not have factored into estimates. Not sure I've heard any other economists forecast such high numbers.

No comments: