ISM reveals that manufacturing is leading the way

The ISM Manufacturing Index rose 2.3 points in January to 60.8, the best reading since May 2004.

I provide details in my report on Examiner.com and just wanted to offer a few insights here.



Output at the nation's factories are improving at a significant rate, according to the data released in the closely-followed survey.

Following the unusually upbeat internals in the advance 4Q GDP report, a strong finish to 2010 in consumer spending and a reading by the ISM in excess of 60, it becomes very difficult to argue that the economy is not entering into a more robust recovery.

There are still uncertainties that exist, including weakness in housing, debt worries overseas (and of course, fears those worries could wash up on our shores), and a reluctance among banks to lend.

But the growing economy seems likely to spark a rise in hiring, which should put the recovery on a self-sustaining path.  The $64,000 question: when will this occur.  We’ve seen strong gains in the ADP Employment Report over the past couple of months, but government data have yet to confirm such a surge.