Wouldn’t that be something?
According to the most recent ISM® Report On Business® The Institute for Supply Management’s manufacturing report PMI® for January registered 59.1%: In the past this PMI® level has suggested a corresponding increase in real GDP of 4.9% on an annualized basis. The Federal Reserve Bank of Atlanta’s GDPNow™ is forecasting a 1st quarter growth rate of 5.4%: Holy Mo…..
Chart courtesy of Windsor Wealth., and The Bureau of Economic Analysis, The Conference Board and The Atlanta Federal Reserve Bank
The Institute for Supply Management’s report on manufacturing has the sector for the 105th consecutive month – some selected comments below; emphasis mine.
- “Sales nationally and internationally are strong in Q1. We are increasing our CapEx spend by 30 percent to 40 percent over [the] previous year.” (Chemical Products)
- “We have heard reports of additional business due to the recent reduction of tax rates.” (Machinery)
- “Our usual winter slowdown has not occurred, and we are very busy with new orders.” (Furniture & Related Products)
- “Slow start to 2018; pricing on metals is heading up and quotes/orders are picking up as well.” (Fabricated Metal Products)
- “Overall, business remains steady. With several key programs to begin ramping up in the industry, outlook looks good for calendar year 2018.” (Transportation Equipment)
- “Business is starting the new year strong. Consumer confidence seems to be driving a lot of our customers’ order requirements higher.” (Plastics & Rubber Products)
The Conference Board economic indicators represent changes in the indices:
No one knows if our economy will get past 3% much less reach 5% but Corporate investment levels and consumer spending levels haven’t been this high in years, I for one, am rooting for us all.
Wouldn’t it be something indeed?
Our portfolios favor Domestic and Foreign Equities, we’ve added commodities; our cash position has increased slightly in recent weeks.
Carlos Dominguez – Portfolio Manager, RJ
*The Atlanta Fed’s GDP Now – https://www.frbatlanta.org/cqer/research/
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