PMI Continues To Be Made Irrelevant By Reality
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“Davidson” submits:
Industrial Capacity continues to rise as does industrial Production, both revised higher. The standout is the PMI remaining below 50, now ~40mos mostly below 50, reflecting an intractable period of market pessimism. Even with the rises we have seen in selected industrial issues, I see a remarkable period still ahead of heady price movement once market pessimism converts to recognition of economic expansion.
The current administration’s tariff policies have yet to see the initial building of additional capacity that the reported $10Tril-$18Tril implies. There remains 3yrs-4yrs of strong GDP growth ahead in my opinion with a decent period of increased wage growth, retail sales and expansion of individual home ownership.
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PMI Continues To Question RealityIndustrial Production And Manufacturing Capacity Revised Higher
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Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or ...
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