ISM Number Worse than Expected

On Friday, the Institute for Supply Management was recorded at 32.4 its lowest level in over 20 years. Right now this number symbolizes the dismal state of the current economy, however it may represent the worse of what we have been through. This seems to be the sentiment on the street because economists and traders are starting to become much more optimistic about the economy in late 2009. You cannot expect growth to be back at pre-depression levels, but positive GDP growth will be welcome whenever it does come. One thing that is for sure is that Wall Street will bounce back before Main Street. The last few trading days may spur some short term optimism in the market, but I don't believe it will last. There is still some major concerns that need to be addressed before we will see a recovery in the United States.

Because we live in a truly global economy it is important to consider that the other countries of the world are also having economic problems. The manufacturing numbers in those countries have also been decreasing fast and for them manufacturing is a much more important factor in the GDP of their country. Lots of demand for U.S. goods and services comes from overseas and until it comes back the U.S. will not see significant and consistent economic recovery.