As the ISM crank up the teleconference here’s the breakdown of the report and what the respondents had to say.
US ISM comments and breakdown 05 05 2014
In the numbers there was a decent gain for export orders. Falling prices aren’t a problem but we could see a mild squeeze on business with supplier deliveries falling.
This was a particularly interesting comment and one we should pay attention to;
“Overall spending continues to trend upward, particularly for large dollar items, like vehicles and aircraft, as the state replenishes the fleet that was depleted during 2009—2013.” (Public Administration)
It’s something that has probably slipped by most of us in that the US government cut back on spending massively over the last few years and if it starts up again then that is going to give the economy another boost. The usual problem of where they find the money to do so is still around but that’s not stopped them before has it?
ISM’s Nieves is on the presser now also.
- Economy definitely seems to be picking up
- Gain in activity seems to be sustainable
- Employment index likely to increase and gains may drive future growth
- Confidence to hire is building, employment increases with a lag
- Recruitment process means payroll growth lags
- Employment has to grow to keep up with business
- Inventories jump to meet demand and catch up
