Wednesday, September 1, 2010

ISM Manufacturing Report Deceptively Not Very Strong

Although it came in higher than expected, the August Purchasing Managers Index report was not as strong as the headlines would have you believe. The components of the index which had the greatest positive effect on the overall index level (and their indicated trend) were:  Prices +4% (increasing faster), Imports 4% (growing faster), and Customer Inventories +4.5% (low but slowing).  Here is the source of this information:  LINK

As I suspected, pricing pressure is building in the system, inventory build is slowing down and imports are increasing, which is not really value-added in terms of putting U.S. workers to work or creating much-needed growth in our domestic capital base.

Once again the Truth is to be found somewhere other than where the media spotlight is shining...


  1. How about that 255 point ramp in the market right after the chief prevaricator's computer generated feel good mindcontrol massage? PPT big on the case. And that high volume special ramp job on high volume HFT the previous day to bring the month's closing to just under 5%? And JPMs dump on gold today on the LBMA Am fix? "Once again the Truth is to be found somewhere other than where the media spotlight is shining..." Right here at the Golden Truth among others.

  2. Just skimmed thru the car sales report. It was UGLY. Adjusted for the population growth, the worst August since WW2.

    Stock mkt reflecting expectations of a big QE program coming.

  3. This is really a good... thanks for sharing...

  4. you are really doing well. appreciate your efforts.