Although today’s Institute for Supply Management’s Manufacturing Report on Business showed strong trends in manufacturing, the sudden and dramatic reversal compared the last years readings may support an outlook of more tepid, even weakening results going forward.At over twice the annual change seen at any point in the last twenty years, the employment component appears to be reaching levels that are typically seen only deep within a real durable recovery.
Similarly, the backlog of orders, new export orders and the imports indices recently experienced explosive progress as compared to levels seen last year resulting in annual improvements not seen in nearly twenty years.
As we move further into 2010, it would be hardly surprising to see these indices peal back as the significant inventory restocking seen primarily in Q4 2009 largely subsides.
