Something for your Espresso: Everything you better watch while ISM Manufacturing rebounds
Morning from Europe.
The IFO details released just minutes ago always make for interesting reading. We will release our “Nugget view” and our full rundown of the data today and tomorrow, but let me leave you with one chart from the details of the German business survey.
Orders to inventories in Chemicals, which is by far the most important sector to watch for early clues on the cyclical developments, remain subdued but did improve again this month. The improvement in orders to inventories (hinting a restocking period upcoming) arrives alongside a spike in price plans and weaker expectations for hiring. All in all a very mixed bag of goodies.
Chart 1: Chemicals are still not catching up to the land-slide in input costs
There are admittedly early signs that the Manufacturing sector rebounds in the US with the Dallas Fed PMI confirming the stabilization narrative. We tend to agree on the direction of travel in Manufacturing, but here is everything you need to watch outside of that sector.
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