Thursday, July 5, 2012

ISM Report on Business - 7/5/12

The June ISM Non-manufacturing index was reported today and was at 52.08, down 1.65% from the previous month. Manufacturing's PMI, which was released on Monday, fell below 50 for the first time since August 2009. A reading below 50 indicates that the sector is contracting but that the economy is still growing. Only 3 of the 10 categories in Manufacturing are above 50. 7 of the 10 categories in Non-Manufacturing are above 50. I have averaged the Manufacturing and Non-manufacturing components to create a composite reading. 5 of the 10 categories in the composite are above 50.
Below is an interactive graph.  You can interact with the graph by choosing what to display.  The INDICATOR category contains all 10 areas surveyed as well as the PMI and NMI composites.  The choices in the MA/NMA category allow you to view the Manufacturing report (MA), the Non-manufacturing report (NMA), and a composite of the two.  The DATES category allows you to view specific periods of time.

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Furthermore, these charts have limitations.  Economic data is often revised after the fact.  The market is forward looking and anticipates future events.  The unexpected can and will happen.  The market is continually changing.  The conditions of the past are different from the present.  Past performance is not an indication of future performance.