ISM Manufacturing PMI and ISM New Orders – Inventories

ISM Manufacturing PMI and ISM New Orders – Inventories The spread between U.S. ISM New Orders and Inventories indicates a potential increase in the ISM manufacturing PMI, as new orders are increasing at a faster pace than inventories. Image: BofA Global Investment Strategy

ISM Manufacturing Index vs. S&P 500 Index

ISM Manufacturing Index vs. S&P 500 Index This chart shows the correlation between the ISM manufacturing index and the S&P 500 index year-over-year percent change, since 2011. The U.S. ISM Manufacturing Index in January stands at 49.1%, exceeding the consensus forecast of 47.2%, which is an encouraging sign. Click the Image to Enlarge

U.S. ISM Manufacturing PMI vs. S&P 500 EPS Growth

U.S. ISM Manufacturing PMI vs. S&P 500 EPS Growth The S&P 500 12-month forward EPS suggests that the U.S. ISM Manufacturing Index will rise to 52, potentially leading to an increase in manufacturing activity. Image: BofA Global Investment Strategy

U.S. Nonfarm Payrolls vs. U.S. ISM Manufacturing PMI

U.S. Nonfarm Payrolls vs. U.S. ISM Manufacturing PMI When the ISM manufacturing index is below 50, it is less likely for payrolls to rise due to the associated decline in manufacturing activity and the potential for job losses. Image: BofA Global Investment Strategy

ISM Manufacturing PMI vs. ISM New Orders – Inventories

ISM Manufacturing PMI vs. ISM New Orders – Inventories The U.S. ISM New Orders less Inventories spread continues to suggest a higher ISM Manufacturing PMI. This correlation points towards a positive outlook for the manufacturing sector. Image: The Daily Shot

ISM Manufacturing Index and Autos vs. Retail

ISM Manufacturing Index and Autos vs. Retail When there is robust economic growth, it is generally expected that the autos sector would outperform the retail sector. Image: Goldman Sachs Global Investment Research