ISM-Strong
Posted by WARREN MOSLER on January 3rd, 2011
Karim writes:
* Headline came in as expected, but details strong.
* Gap between new orders and inventories (which declined sharply for both suppliers and customers) at highest since May 2010.
* Employment down modestly but still at high level.
* Prices paid remains elevated but appears of little consequence for inflation; Prices Paid ranged from 60 to 80 for most of 2010 and inflation slowed throughout the year.
Anecdotes:
* “Company outlook looks positive into 2011. Solid revenue growth across the globe driven by strong volume in Q3 and Q4 2010.” (Chemical Products)
* “We continue to see strong demand for our product in Europe and Asia.” (Electrical Equipment, Appliances & Components)
* “The end of the year is surprisingly busy.” (Computer & Electronic Products)
* “Business remains slow, while vendors clamor for increases that should have no foundation in economics.” (Nonmetallic Mineral Products)
* “Strong pressure still exists on raw material prices in almost every area. It is unclear as to whether they can get them.” (Plastics & Rubber Products)
=====Dec 2010 | Nov 2010
Index ……………….57.0 56.6
Prices paid…………72.5 69.5
Production………..60.7 55.0
New orders………. 60.9 56.6
Inventories………..51.8 56.7
Customer inv…….40.0 45.5
Employment………55.7 57.5
Export orders……54.5 57.0
Imports……………..50.5 53.0
January 3rd, 2011 at 3:41 pm
Krugman is warning not to get too smug over the good numbers.
Deep Hole Economics
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January 3rd, 2011 at 5:49 pm
I think its fairly consistent with what Warren’s been saying here.
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January 3rd, 2011 at 8:58 pm
It is. The deficit should be as large as it takes to reduce unemployment. Pulling back now is suicidal. The debt ceiling is an upcoming issue.
There is a lot of political polarization right now on the economy. The Right is hell-bent on reducing spending. Deficit spending will be increasingly more difficult to sell. This is what I worry about the most.
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