The total farce that is US diffusion index data continues, with the manufacturing ISM printing at 61.4 on expectations of 61.0, and compared to 60.8 previously. Contrary to what the respondents actually said (see below) there was not one adverse thing to be gleaned from the ISM data. In fact, the data is now so unbelievably ridiculous that the Employment Index came at 64.5, the highest since 1973! And this as the country sees roughly 17% in U-6 underemployment, and the number of Americans on food stamps, well over 40 million, is at an all time record. This lunatic number inspired the ISM's Ore to say that "Employment looks fantastic" even though in the next sentence he confirms that "many US companies are in a margin squeeze." Um, psychotic medications much? The US Department of Truth has now gone full retard.
A slightly more credible version of reality can be gleaned from the survey responses:
- "A continued weak dollar is increasing the cost of components purchased overseas. It is going to force us to increase our selling prices to our customers." (Transportation Equipment)
- "We continue to see significant inflation across nearly every type of chemical raw material we purchase." (Chemical Products)
- "Our plants are working 24/7 to meet production demands." (Fabricated Metal Products)
- "Prices continue to rise, while business limps along at last year's pace." (Nonmetallic Mineral Products)
- "Overall demand is off 10 percent." (Plastics & Rubber Products)
Those who wish to liquefy their frontal lobes can do so here.
Here is the only chart that actually matters: ISM Employment vs NFP Change.
Enough with the endless lies already.