May 2016

ISM Manufacturing Survey Reports a Ho-Hum PMI of 50.8%

The April 2016 ISM Manufacturing Survey is a ho-hum month of manufacturing molasses.  While in growth, Manufacturing is barely so and inventories are in their 10th month of contraction.  PMI was 50.8%, -1.0 percentage point lower than March.  New orders dropped -2.5 percentage points but are still in growth.  Manufacturing Employment is still contracting and has been for five months.

Bets Drive Oil Prices Up 20% In April Despite New Inventory Records Each Week

Oil prices, and prices for everything that is refined from oil, continued to head up last week, something you don’t need me to tell you if you've bought gasoline lately.  There has been no fundamental change in the global oversupply situation that would account for higher prices, however, but rather a change in the betting positions of oil speculators.