Join        Login             Stock Quote

ISM Manufacturing Index Rises For December

 January 02, 2013 03:45 PM

The manufacturing sector closed 2012 on an upbeat note, according to today's December report for the ISM Manufacturing Index. This widely followed benchmark rose to 50.7, up from 49.5 in November. A reading above 50 is considered a sign of growth and so the manufacturing sector overall is again leaning towards the forces of light rather than darkness, if only slightly.

Today's report is hardly a robust reading in terms of reversing November's weakness. But the first major statistical clue for December's economic profile offers a bit of comfort for thinking that the economy overall will continue to post favorable numbers for 2012's final month. The November profile of a broad array of indicators certainly looks encouraging, and today's update on the ISM index leaves room for thinking positively that a bias for growth generally will roll over into December.

[Related -The April 29 Gold Triangle Breakout Update]

Still, the fact that the composite ISM index continues to hover around a neutral 50 reading reminds that manufacturing is still vulnerable. Meantime, one might wonder how much damage the fiscal cliff factor inflicted on the economy generally. Yes, the risk has been largely defused, thanks to the tortured yea vote today in the House. That's probably a net plus for the economy in the near term, but it's unclear what effect, if any, the long-running debate has already unleashed in terms of reduced growth.

[Related -Sell In May, But It Is A Presidential Election Year]

Today's ISM news, however, offers some support for thinking that the economy still had some forward momentum as 2012 faded into history. The stock market is clearly impressed with the combination of a resolution of the fiscal cliff peril and a relatively upbeat ISM report. As I write this morning, the S&P 500 is up a strong 1.9% in today's session.

Yup, the macro news in 2013 remains positive... so far. That doesn't mean much on January 2, but the 1,000-mile journey for the year ahead is off to a decent if still-precarious start.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTackling China's Debt Problem: Can Debt-Equity Conversions Help?

China’s high and rising corporate debt problem and how best to address it has received much attention read on...

article imageWill Job Growth Kill The Bear-Market Signal For Stocks?

It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Why We're So Unhealthy
More Articles on: Economics Data

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.