Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Buoyed by gains across various sub-components, the ISM Manufacturing Index broke above 50 for the first time since 2022. Prices, production, employment and new orders all rose in a long-awaited rebound for a sector that has felt the pain of higher interest rates more acutely than others.
Everything Was Going So Smoothly
On a day when financial markets are in a tailspin over the start of a trade war, the ISM Manufacturing Index crested above the 50 line into expansion for the first time since 2022 (chart). News that manufacturing activity is once again in expansion mode will not be salve to worried investors as it reflects a pre-tariff assessment.
There was broad based strength in the ISM with four of the five components that make up the headline index higher at the start of the year.