In recent weeks we have seen good economic data coming from the various bodies that report on the health of the U.S. economy. Though they are good reports the trend seems to be of less strength rather than more strength. In other words the numbers are turning ever so slightly weaker.
It is far too early to determine if this will translate to a continuing trend or if it is a normal ebb and flow of the economic data. In housing it is clear that a peak has been reached. This week the ISM numbers for manufacturing, while still strong, fell from a peak of 61.3% to 59.8%. Anything above 50 demonstrates expansion of our economy so there is no fear of contraction, just less strong.
It is always in the direction of the numbers an investor should watch for, that is where trends develop, and as always trends tend to be durable. Are we seeing some small cracks developing in an otherwise very strong economy?