U.S. ISM Manufacturing Index vs. S&P 500 EPS Annual % Change

With the ISM Manufacturing Index and S&P 500 earnings growth moving hand in hand, either ISM climbs into the high 50s as the cycle heats up, or earnings estimates reset lower. At this point in the cycle, the revisions tend to come first.

Image: Real Investment Advice

ISM Manufacturing Index vs. S&P 500 EPS Annual % Change