ISM Disappoints

This morning, we got the ISM report for August and it wasn’t that good. The number came in at 49.1. Any number below 50 means the manufacturing sector is contracting.

This is the lowest level for the ISM since January 2016. Analysts were expecting 51.1.

Let me add two caveats.

Last month’s number is still well above where recessions typically kick in. Recessions typically align with ISMs around 44 or 45.

Also, this is just one sector of the economy. A huge majority of our economy happens outside factories. The consumer part of the economy is still holding up well.

Posted by on September 3rd, 2019 at 10:15 am


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