ISM, Construction Numbers Paint A Differing Economic Picture

Institute for Supply Management (ISM) Manufacturing Index came out Monday at 59, beating consensus of 56.1. New orders, the most-watched component of the ISM, came in red hot at 65.8, while production came in strong at 64.8. This points to an ever-strengthening economic backdrop, with the last two months the strongest back-to-back months since February 2011. Construction spending, by contrast, dropped 0.4 percent versus expectations of a gain of 0.6 percent, with public outlays and non-residential spending showing the biggest drop. Residential spending did tick up 0.4 percent, following last month's drop of 0.3 percent. The market showed some weakness following the numbers, but has since rebounded to trade in a very narrow range.