Liz Ann Sonders: ISM Manufacturing PMI shows slowing growth in new orders
@LizAnnSonders: ISM PMI shows declines
Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, highlights a downward trend in the manufacturing sector.
According to the latest data from the Institute for Supply Management (ISM), as of June, the count of industries experiencing growth in new orders has dropped to seven. Concurrently, the number of industries reporting higher prices paid for materials has decreased to fifteen. These figures, indicative of broader economic dynamics, reveal potential challenges faced by manufacturers in maintaining growth momentum.
The ISM Manufacturing Purchasing Managers' Index (PMI) serves as a critical economic indicator, reflecting the overall health of the manufacturing industry in the United States. Sonders points out that fluctuations in this index can provide insights into economic trends that may affect investment strategies and market outlooks.
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The current headwinds observed in manufacturing add to a complex economic landscape shaped by monetary policy and corporate strategies. Recent shifts in producer sentiment mirror developments Sonders analyzed when the Federal Open Market Committee opted to keep interest rates unchanged while signaling a possible 2025 adjustment, as detailed in her coverage of the FOMC's rate decision and dot plot projections. Additionally, changing corporate attitudes toward capital allocation—evident in the recent surge of S&P 500 buybacks reaching a record in the first quarter—underscore the broader implications of macroeconomic shifts on investment confidence.
In the previous news, tweet author Liz Ann Sonders discussed asset allocation strategies in volatile markets.
