The ISM Manufacturing PMI Holding At 55.5

The ISM Manufacturing PMI reported at 55.5. This is a market psychology indicator That is, a market survey not an economic measure. Of the three series shown in the chart only Industrial Production is a hard count economic indicator.

Sentiment is what drives equities higher. Rising sentiment is correlated to rising equity prices. The recent 3Q26 Real GDP report annualized to 3.4% was quite positive. Adjusting for imported machinery demand in the US to build data centers and manufacturing facilities, 3Q26 Real GDP is annualized over 6%.

Finally, govt policies are emerging as a strong economic trend likely to stretch several years.