Courtesy of Mish.
The discrepancy between the ISM’s Report on Business and Markit’s Manufacturing PMI assessment of the economy widened today.
Both reports agree that cost inflation is rising quickly despite moderation in the price of oil.
ISM Commentary
The ISM noted 17 out of the 18 industries reported growth in March.
Here’s the statement that caught my eye: “The past relationship between the PMI® and the overall economy indicates that the average PMI® for January through March (57 percent) corresponds to a 4.3 percent increase in real gross domestic product on an annualized basis.”
On an over-under basis, I will take “the under” as in way under.
Markit Key Findings
- Manufacturing growth slows to six-month low in March
- Headline PMI eases to 53.3, down from 54.2 in February
- New orders rise at weakest pace since October 2016
- Input cost inflation hits two-and-a-half year high
