Tuesday, June 1, 2010

ISM Manufacturing Shows Continued Rebound

ISM details what respondents are saying:

  • "Tight supply conditions exist for electronic components." (Computer & Electronic Products)
  • "No signs of the ramp-up abating anytime soon." (Machinery)
  • "Volatility of steel and steel-making components is forcing us to raise prices on our shipped goods to automotive customers." (Fabricated Metal Products)
  • "Aftermarket sales increased 25 percent during the past quarter." (Transportation Equipment)
  • "Sales exceeded budget for the fourth consecutive month." (Food, Beverage & Tobacco Products)

Source: ISM


  1. I don't think anybody has been debating the merits of a manf. recovery. The question is can manf. actually lead a recovery? Typically it's residential investment, CRE that lead the way out of recessions. We've blown that corner of the market to smithereens and pulled forward a substantial amount of demand. If RRE/CRE prices stay flat or drift lower what impacts would that have on the marketplace and confidence levels?

  2. Rather than "if" I think a continued CRE / RI downturn is the baseline. Poses major issues to banks and credit markets and impetus for continued reflation initiatives by the gov't. My thought is that it won't feed into CRE / RI (stricter lending) so I'm looking for other places for that liquidity to go.