Tags: orders | economy | bullish | export

Latest Economic Data Show Expected Global Slowdown Unlikely to Hurt US

By    |   Friday, 05 Dec 2014 08:03 AM

Economic data continue to be bullish even as the headlines remain bearish. In many ways, we are in the midst of a typical bull market where stock prices climb a wall of worry.

There are a number of things to worry about, according to news reports. Instead of worrying, we can also do research. There is a lot of data we can consider if we look beyond the headlines. Among the most reliable economic indicators is the monthly Manufacturing ISM Report on Business. In the latest report, we learned that economic activity continued expanding in November. This is the 66th consecutive month of expansion.

Among the most interesting data in that report was the fact that export orders expanded in November. The new export order index increased by 3.5 percent in November and has been reflecting growth in exports for 24 consecutive months.

This data contradicts the headlines that tell us that the global economy is slowing. There are fears of recession in Europe, China and Japan. Yet manufacturers in those countries are increasing their orders for goods and services made in the USA.

New orders are a leading economic indicator. The new orders index for the domestic orders also increased in November pointing toward strong growth in manufacturing in the coming months.

If I could only follow one economic indicator, it would be new orders because orders always rise or fall ahead of turning points in the economy. That indicator is bullish for the U.S. and the global economy. That could change and when it does, it will be time to turn bearish. But, for now, stock market investors should be bullish since stock prices generally rise when the economy expands.

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MichaelCarr
Economic data continue to be bullish even as the headlines remain bearish. In many ways, we are in the midst of a typical bull market where stock prices climb a wall of worry.
orders, economy, bullish, export
282
2014-03-05
Friday, 05 Dec 2014 08:03 AM
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