US Macro: ISM PMI & NMI Sep 2017
Now that hurricane season is over its time for another macro update. Summer is also over so I hope to have more free time to boost up the blog. But for now, lets go through NMI and PMI to see what these leading indicators have to say about the USA economy.
As you can see PMI is now over 60. This is a very high level that we haven’t seen in more than a decade. This is very positive! Hurricane season has been very harsh but it hasn’t affected the economy as a whole. Actually its quite likely that it has created opportunities for some companies that are now going to take part in the rebuilding of the affected states.
Let’s move on to the service sector, which has also shown very high readings on its NMI. Again hurricanes might have impacted for a while but now business seems to believe that they will be able to turn this into opportunities. As we can see it’s not just the NMI but the new orders are also very high. Which suggests that there is a lot of work to do in the following months. Therefore we should expect companies to do well and GDP to keep accelerating.
In conclusion, both PMI and NMI are showing extremely high readings, which means we should take a bullish stance. So we should keep our bullish views untouched. We’ve been bullish for more than a year now and it looks like for now that is the correct thing to do.
Nuño Pérez del Barrio