ISM Employment Down, Prices Paid Highest In 20 Months, As Construction Spending Plunges.

The headlines will exclaim ISM Manufacturing beat expectations and reached its highest level since June 2011 (and that is true) but a scratch below the surface shows what really counts. New orders rose as did Production (all good) but the Employment sub-index dropped (what with all these new orders?) and Prices Paid surged to the highest in 20 months. Interestingly New Export Orders improved - though we are unclear (given the PMIs overnight) just who they are exporting to. In other news, the housing recovery is trotting along - apart from the biggest MoM plunge in construction spending in 19 months.

ISM best in 20 months...


as Construction spending plunged...


Charts: Bloomberg


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