January Manufacturing ISM
The Cyclical Pivot: From Drags to Tailwinds
Back on January 20th, these pages highlighted a quiet underlying labor market boom, that would have implications beyond merely supporting aggregate demand. Mainly:
“The consensus is still too bearish on growth. The US consumer - specifically the one with a job, a mortgage and the 401k - is still in the game to spend and drive aggregate demand even hotter”.
Yesterday’s ISM Manufacturing print validates this view.
Specifically, the forward-looking new orders component hit a level not seen since the halcyon days of February 2022.
