Bond prices reacted immediately to the ISM manufacturing index decline. The rise was swift and strong because this was the one economic area that was expected to perform well. The good performance expectations was not so much from the domestic demand as from exports. Exports were supposed to bail out a slowing economic from housing, but even that component of the ISM index showed a slowdown though it still has a reading above 50, which means it is growing.
This one data point is yet to be a trend, but is not good as a first indication of US economic growth.
This one data point is yet to be a trend, but is not good as a first indication of US economic growth.
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