There has been a lot of discussion out there about the economy cooling down, so I wanted to take some time to talk about a few key indicators which have been performing very well, despite the recent government shutdown and the ongoing trade disputes. The Institute for Supply Management is an organization which publishes a report every month that looks at indicators relating to various sectors of the economy. The February Report on Business, which you can access here, showed that the Non-Manufacturing Index (NMI) was at 59.7, up 3 points from January. This number is a composite of data from all the non-manufacturing industries about business activity, new orders, employment, and supplier deliveries. Each non-manufacturing industry experienced growth, and while they did report concerns about the uncertainty of tariffs, capacity constraints, and employment resources, they were optimistic about the overall business conditions and economy.
So what is the takeaway from all of this data? Despite the turbulence in the political climate and the stock market, the consumer remains strong. The fundamentals for many companies are strong, despite slowing growth. As always, consult with your financial professional before making any major changes to your strategies.
Cheers!
Sources:
https://www.instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?navItemNumber=31115
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