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The ISM report: US manufacturing slowest since 2009 – Sober Look

This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Today’s ISM report confirmed what was already visible in the Markit PMI figures (see discussion) – the “spring slowdown” in US manufacturing is here. The table below shows the breakdown of the month-over-month changes – orders and production seem to be the main drivers. Weakness in Backlog of Orders does not bode well for the sector going forward.

 

Source: ISM

The ISM manufacturing indicator is now at the lowest level since 2009:

Bond prices rose as a result, with the expectation that the US growth is not nearly as robust as some have thought. Of course bond investors are still in a selling mood, and we are likely to see yields drift higher.

10y note futures (source: Investing.com)

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