Manufacturing PMI rises to 55.6. The PMI(Purchasing Managers Index) has a long history of correlations with other market psychology indicators such as the Regional Fed Surveys and the SP500. Other market psychology indicators include interest rates, both short-term and long-term, rise as capital shifts into equities and other investment categories associated with an expanding economy.
Some are concerned with rising 10yr and 30yr Treasury rates. I am not. I am more concerned with consumer delinquency rates, that is the inability to handle debt. This far, these indicators signal financially healthy consumers.
Comments
Log in or sign up to join the conversation.