Daily Archives: August 1, 2012

James Mackintosh

You already knew the manufacturing purchasing managers‘ indices mattered, given today’s disappointing figures for the US ISM. But perhaps you hadn’t appreciated how much Wall Street analysts focused on it.

This chart (with a big h/t to Gerard Minack at Morgan Stanley) demonstrates the value of the ISM, the oldest of the PMI surveys. Read more

James Mackintosh

It’s PMI day again, and the news so far is once again terrible for Europe. The manufacturing purchasing managers’ indices are one of the best set of indicators of what is going on in the economy, because they are so much more timely than GDP figures.

The data produced by Markit for the eurozone are awful. Greece goes from bad to worse, and even the motor of the eurozone – Germany – is struggling badly, with manufacturing output and new orders falling at the fastest since April 2009, shortly after the recovery began.

This matters for equities. Consider these two charts: Read more