Source: Economics Group of Wells Fargo Bank, N.A.
Summary
A flat reading on the ISM manufacturing index tells us business capex plans are on hold amid uncertainty over the path to lower interest rates and the presidential election outcome. The details show inflation is a fading problem, while jobs are a growing worry.
Broken Record
The September ISM suggested more of the same for U.S. manufacturing. The ISM index held steady at 47.2 last month and the vibe from purchasing managers is one of waiting (chart). Waiting for the outcome of the presidential election, and waiting on more interest rate cuts to be realized and translate to lower borrowing costs. Take it from a respondent from the furniture & related products’ industry who said: “Business is flat.