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To: RetiredNow who wrote (105070)	12/2/2011 1:20:03 AM
From: tejek	Respond to of 149317

Very interesting ISM report. It shows that activity and NEW ORDERS is up a good clip. That's great news! BUT...the employment index is down. Uh oh. That means productivity should be going up and corporations getting more profitable, but the CONSUMER is earning the same or less. Given that the Consumer is 75% of our economy now, that is not good. One other thing to note. ISM is a LAGGING indicator. LEADING indicators include PMIs from the big manufacturing countries like China. If you recall, China's PMI that just came out was dismal. They are contracting. That means our GDP and Consumer spending data over the next few months should also start to look dismal. Not good.... MM, I have learned with economic data to look at the individual data and then pullback and try to get the big picture. Employment going down one month has little meaning to me. If it continues for 3-4 mos, then I take notice. As for China, it has spent the past year and half trying to engineer a soft landing for its economy by raising rates. It appears to be working. Now they can stop raising interest rates and start spending some of that huge pool of spending money they are sitting on to stimulate their economy. What's happening in China is a once in a lifetime event where masses of Chinese are moving into the middle class. Its not unlike the impact development of the internet and tech industries had on the US during the 90s. Eventually it will come to an end but that is still in China's future......IMO.