There’s no doubt the trend is moving in the right direction. The Markit US manufacturing PMI has been in overdrive since falling to 52.0 in late 2013.
- US Markit PMI
The market is extremely sleepy today but these numbers are real and paint a picture of an economic pickup. The negative story is that it’s not so much traditional manufacturing that’s driving the gains but oil and gas-related production that is counted as manufacturing. Still, jobs are jobs.
The FOMC story this month was the less-than-enthusiastic tone from Yellen but worries about inflation are incubating and the moment she shifts tone, the US dollar is poised for an extended rally. Each data point like this brings that day closer.
