Monday August 1, 2011 10:10 – ISM – More Evidence of Economic Slowing

The Institute for Supply Management (ISM) manufacturing index came out at 50.9, much lower than expectations. It is just 1 point away from turning negative, which would forecast contraction in the manufacturing sector. On top of the horrible GDP #s last Friday this is not a good sign for the economy.

Manufacturing is the only engine of economic growth that has shown any strength in this recovery. If that is lost, recession would likely follow. Consumers and government are just too indebted to do significant spending.