• Contact Us

    Thank you for your interest in Capital.
    We welcome the opportunity to meet with you.

    Please Note!

    We've moved! Our new office is located on the 13th floor in the Chase building across the street from our previous location. Please call if we can help you find us!

  • Our Telephone Numbers

    (414) 278-7744  Local
    (800) 345-6462  Toll-free
    (414) 278-8403  Fax

    Our Mailing Address

    Capital Investment Services of America, Inc.
    111 E. Wisconsin Avenue
    Suite 1310
    Milwaukee, Wisconsin 53202

October 2012 ISM

Download PDF

The Institute for Supply Management gauge of manufacturing conditions for the just completed month of October supports the notion that the grind forward economic trend remains in place.

Most encouraging is the new order data (highlighted line in the table below). The increase in this subcomponent is a good “leading indicator”. The highlighted footnote below the table is a reminder of the ISM’s suggested interpretation of the release. An overall index above 51 and a new order index also above 50, suggest the grind forward will continue even in the face of the “fiscal cliff” induced inertia that so many are talking about.

U.S. October ISM Manufacturing Higher Than Estimate (Table)
2012-11-01 14:01:18.666 GMT
Nov. 1 (Bloomberg) — Following is a summary of U.S. manufacturing conditions from the Institute for Supply Management. The Bloomberg median estimate from 88 economists was 51.

================================================================================

                      Oct. Sept.  Aug.  July  June  May April March 6-mo

                                    ’12   ’12     ’12    ’12    ’12    ’12    ’12    ’12    Avg.

================================================================================

Manufacturing index     51.7  51.5  49.6  49.8  49.7  53.5  54.8  53.4   51.0

Prices paid                  55.0  58.0  54.0  39.5  37.0  47.5  61.0  61.0   48.5

Production                   52.4  49.5  47.2  51.3  51.0  55.6  61.0  58.3   51.2

New orders                  54.2  52.3  47.1  48.0  47.8  60.1  58.2  54.5   51.6

Backlog of orders         41.5  44.0  42.5  43.0  44.5  47.0  49.5  52.5   43.8

Supplier deliveries        49.6  50.3  49.3  48.7  48.9  48.7  49.2  48.0   49.3

Inventories                   50.0  50.5  53.0  49.0  44.0  46.0  48.5  50.0   48.8

Customer inventories    49.0  49.5  49.0  49.5  48.5  43.5  45.5  44.5   48.2

Employment                52.1  54.7  51.6  52.0  56.6  56.9  57.3  56.1   54.0

New export orders        48.0  48.5  47.0  46.5  47.5  53.5  59.0  54.0   48.5

Imports                        47.5  49.5  49.0  50.5  53.5  53.5  53.5  53.5   50.6

================================================================================


Asset Valuations

Meanwhile bonds and stocks remain priced for economic stagnation—or worse (click the chart to the right for a larger view). With such low expectations, even a continuation of the grind forward economy burdened by Washington’s wet blanket policies, will likely allow stocks to deliver decent returns. Bonds? That’s a whole different prospective return story all together!