It was bad news for the U.S. economy on Monday, which turned out to be good news for the financial markets.
The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) weakened to 50.9 in September, surprising everyone as economists anticipated a reading of 52.2. This is down from 52.8 in August.
The monthly snapshot of the manufacturing sector saw employment and new orders weaken and prices fall slightly.
Meanwhile, the S&P Global Manufacturing PMI did slightly better than expected, edging up to 52 in September, up from 51.5 in the previous month.
Construction spending tumbled 0.7% in August, higher than the market estimate of -0.3%.
Are rising interest rates and slowing money supply growth beginning to impact the U.S. economy?
Here is a chart to perhaps answers this question:
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