The number: Surprise! Despite a series of ugly regional Fed surveys, the ISM manufacturing index solidly beat expectations, hitting 56.3 vs 55.5 last month.
The meltup is continuing, as indices are now up around 2%.
Background: The regional Fed surveys have already foretold a weakening of the ISM Index. Analysts are looking for a reading of about 53, which still indicates growth, though clearly at a slower pace than what we’ve seen recently.
This chart from Calculated Risk shows the connecting between the regional surveys and the ISM. The red line is the ISM.
Photo: Calculated Risk