Manufacturing & Construction, Dual Misery But Hints Of Decent News

Covering U.S. and global economic data is not exactly the most optimistic of topics today.  The good news is that some of the bad news is not as bad it could be.  Today’s additional data is from the Institute of Supply Managements, or ISM), on manufacturing and then from construction spending for December.

The ISM reported that manufacturing is still contracting.  The Januaryreading was 35.6.  That is well above a revised reading of 32.9 inDecember and above 32.0 estimates, but is still well under the 50.0level of break-even.  The prices paid component also rose to 29.0 from18.0 in December.  There was actually no change in the employmentcomponent at 29.9.

Construction spending in December was -1.4%, worse thanestimates of -1.0%.  We also saw a preliminary number 0f -0.6% forNovember get revised to an even worse reading of -1.2%.

Again, much of this data is either coming in slightly ahead ofestimates or just not as badly as expected.  Many wonder if that meansthat bad news just hasn’t been fully worked into the system.  Some mayeven call it manipulated.

Jon C. Ogg
February 2, 2009