Blistering GDP and ISM Manufacturing Reports

February 1, 2010 at 11:40 am  ·  Category: Macro Economics, Market Commentary

From the looks of the latest GDP and ISM Manufacturing reports, you’d be a fool not to believe the economy is in a V-shaped recovery.

On Friday, The Commerce Department reported that 4th quarter advanced real GDP grew at a 5.7% annual rate.  That’s up from a 2.2% increase in the 3rd quarter.

This morning, The Insitute for Supply Management reported that their manufacturing survey for January came it at a 5 1/2 year high of 58.4.

Can we believe them?  What are these numbers actually measuring?  Why isn’t the market responding better to these blistering economic reports?

sp-1-year-chart

Posted by Greg Feirman  ·  Trackback URL  ·  Link