The ISM Manufacturing reading just reported a number of 49.6 which is the second month in a row the number has been below the 50.0 mark.
Today’s estimate was a call for 50.0 which would have been an improvement over last month’s outcome of 49.8, but as it turns out the U.S. economy continues to show signs of weakening.
While Friday’s jobless number looms large, it is the ISM readings that may put pressure on Fed to act.
But as has been mentioned several times in several places it is questionable that the Fed has a new silver bullet that can do anything but try to create stability for the U.S. economy. Because while stability is nice, growth and job creation would be much better.
The real economy which is dominated by the U.S. consumer and their ability to spend has a long way to go before it believes in the pot of gold at the end of the rainbow again.
It will be more than interesting to see how investors returning from their Labor Day weekend react to this data when trading hits its stride on Wall Street today.