Another Huge V-Sign of Economic Recovery: ISM Hits 5 1/2 Year High, Predicts GDP Growth = 5.5%
More from Brian Wesbury and Bob Stein:"If this isn’t a V-shaped recovery, we don’t know what is. Today’s ISM Manufacturing report blew away consensus expectations, surging to the highest level since 2004. The increase in
the ISM shows that the strong real GDP growth of late 2009 was not some kind of one-off inventory-related fluke, but is continuing into 2010. According to the Institute for Supply Management, which publishes the ISM report, an overall index reading of 58.4 is
consistent with real economic growth at a 5.5% annual rate."
8 Comments:
I love the V. Let's all dance the V.
A V for you, a V for me, and I even see a V when I look at a tree.
The Obama team is doing its job.
Note the following slide show from the Business Insider: Goldman: After Six Months, We Can Safely Say This Is No V-Shaped Recovery
From the beginning, this has seemed like a crisis of confidence. Don't hear that phrase much any more, probably because there is a demoncrap in the white house.
Maybe big business will start hiring again and I will get a job finally. That is, of course, if republicants and more conservative democrats can block Obummer's insane economy destroying agenda.
Hey, I am not grandstanding!
It's all a V until it turns into a W. Don't get me wrong - I hope it's a V. But we've been hearing "the recession is over" about every 15 minutes for the last 12 months. I'd say we have a crisis of confidence in economic predictions, and one that's not unfounded.
What a huge V-recovery. The U.S. is producing more houses, autos, imports, etc. for the masses than ever before. Living standards have gone through the roof!
prosperity is just around the corner
I've been reading that some economists think that this uptick is due to the fact that some manufacturers, who have been delaying orders, and instead running their inventory down, have a finally reached a point where they can't put off ordering anymore, and were looking to put the expenditure in the '09 tax year. FIW
My hangup with the ISM guage is that it only represents a small part of today's economy. The ISM service index which represents the non-manufacturing portion of the economy was 50.1 in December. This means the bulk of the economy is showing no growth. The manufacturers are showing growth because the exports are rising as the world economy strengthens (I agree the world is in a V). While we can export manufactured good, it is harder to export the services.
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