Market Commentary

The ISM manufacturing index report

ISM manufacturing index

The ISM manufacturing index report for November came in at 57.5% from 59.3%. the Chicago PMI for November fell to 58.2 from 61.1. Finally, manufacturing PMI for November remained the same month over month at 56.7. These numbers are good numbers, but I am seeing a slight weakness which will likely grow as the number of cases of covid grows. States are imposing more restrictions and of course, that will retard the recovery further.

The race to get out the vaccine is on with the rise of covid cases winning for the time being. By the end of this month, we will have two approved candidates. Millions of doses will go out to healthcare workers first.  It may be that by the middle of the year there will be enough doses to give everyone in the U.S. that wants it.

The economic numbers will return to normal by year-end but it won’t be until 2022 that the economy will have reset completely. At that point, we will see what all the excess spending to combat covid does to the dollar, inflation, and growth.