SQQQ - ISM And Recession
2024-02-08 09:48:00 ET
Summary
- The ISM manufacturing survey has been below 50 for 15 months in a row and sits today at 49.1.
- This survey, along with a lot of other manufacturing data and anecdotes, has been cited repeatedly by the economic bears as evidence we are heading for recession.
- The overall economy continued in expansion for the 45th month after one month of contraction in April 2020.
The ISM manufacturing survey has been below 50 for 15 months in a row and sits today at 49.1. This survey, along with a lot of other manufacturing data and anecdotes, has been cited repeatedly by the economic bears as evidence we are heading for recession. That, of course, hasn’t happened and that is consistent with this indicator. Yes, below 50 does indicate contraction – of manufacturing. But that doesn’t mean the entire economy is in contraction. Manufacturing is only about 24% of total GDP, so it would be hard for manufacturing, by itself, to push us into recession. In fact, manufacturing contraction is usually an effect of the rest of the economy slowing, not a cause of it....
ISM And Recession