The ISM Manufacturing Index is a key factory report that takes and in-depth look at the health of goods producers. Weakness in housing and autos and the falloff in global trade have taken a huge toll on the sector but the latest numbers suggest the rate of contraction is slowing.
Last month, the index rose 3.8 points to 40.1, topping expectations and reaching the highest level since last September. A reading below 50 suggests that factory output is falling but the trend in recent months has been favorable. Weakness in new orders and production are starting to abate, while exports showed some improvement.
Source: Institute for Supply Management
Much like the Consumer Confidence Index released earlier in the week, the University of Michigan's survey of consumer sentiment is also showing an improvement in confidence, rising to 65.1 in April from 57.3 in March. Sentiment among consumers now stands at the highest level in seven months amid the rally in stock prices.
The improvement is welcome because close to 70% of the US economy is powered by consumer spending. And if consumers are starting to feel a bit better, they may feel less uncertain about making future purchases.
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