US Macro: NMI February 2017
Since it’s the first time I publish about the NMI in this blog I’ll do a small introduction to it. It’s a macroeconomic indicator that works exactly like the PMI does (more info: here), except in this case it surveys the non-manufacturing companies.
So what we are going to look for in the graph is the level of NMI and New Orders, and the direction (Rate of change). We want a higher than 50 NMI and an upwards direction.
As you can see we’ve had a higher than 50 NMI since 2010. We’ve had some ups and downs since then. But from October 2016 onwards we have positive directionality on both the NMI and New orders, which is at a high level already.
This indicates should be taken as a positive sign for both the markets and the economy. It indicates towards growth and better company results.