US: ISM index continues its trend in strong expansionary region

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Despite the shadowing effect of the increasing recent Covid cases, we observe that economic growth remains at an improved level. More minimal details regarding the supply supply problem are seen in the ISM manufacturing index, which rose to 61.2, close to the expected value from 60.8. In this context, current developments in the production of goods and inflation show that price pressures intertwined with sectoral growth continue.

 

If we look at the sub-items; The production index rose from 59.3 to 61.5, while new orders rose from 59.8 to 61.5. Pending orders decreased from 63.6 to 61.9 and lead time decreased from 75.6 to 72.2. The decrease in delivery times compared to the previous month is a positive development. However, the current situation regarding the supply supply problem continues and the cycle in terms of supplying goods and transportation is still slow. In addition, these effects continue to form the basis for inflationary price pressures. The price index fell from 85.7 to 82.4, with new export orders standing at 54, just below the previous month’s 54.6. The import index, which contracted in October, became 52.6. The employment index increased from 52 to 53.3.

 

For the Fed, this is still the main factor, as the issue is inflation. On the other hand, the slowness in the supply cycle between the US and China is still remarkable and shows that the supply of goods in the economy is still insufficient. The supply cycle, which cannot keep up with the Pazarcık escort demand, will also cause the production to slow down. In terms of employment, it will be necessary to pay attention to the details in the non-farm data coming Friday.

Kaynak Tera Yatırım-Enver Erkan

Hibya Haber Ajansı

Kaynak: Hibya Haber Ajansı

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