Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a754354

Calculation error masks US manufacturing five-month high

by Eleanor Lawrie on Jun 03, 2014 at 08:10

Calculation error masks US manufacturing five-month high

A mistake in the calculation of seasonal adjustments led to the Institute for Supply Management (ISM) to incorrectly announce that US manufacturing activity fell from 54.9 to 53.2 on its index, when actually it increased to a five-month high of 56.

A reading of more than 50 on the closely-watched index denotes an expansion, while less than 50 is a contraction.

'The new May survey fits closely with the improving picture evident in the regional survey data and the Markit national PMI,' Paul Ashworth, economist at Capital Economics, noted.

'Overall, based on the corrected survey, it appears that manufacturing activity is still gathering momentum after the winter slowdown.'

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet