ISM Factory Index Signals Continued Expansion
June 1 (Bloomberg) -- "Manufacturing in the U.S. expanded in May for a 10th month as factories continued to help propel the economic recovery. The Institute for Supply Management’s manufacturing gauge fell to 59.7, higher than forecast, from 60.4 in April, which was the highest level in almost six years. Readings greater than 50 point to expansion(see chart above)."
MP: The last time of ten consecutive monthly readings above 50 (indicating expansion) was the ten month period immediately preceding the last recession from February to November 2007. The ISM index has been above a level of 55 in each month this year (January to May), which is the first time since 2004 of five consecutive months that the ISM Index has been above 55.