[Toddsterpatriot]

The U.S. manufacturing sector expanded at a faster-than-expected pace in June, as new orders to factories picked up, a private research group reported Friday. Activity at the nation's factories increased for a 25th consecutive month, according to figures from the Institute for Supply Management.

Sorry, more good news!!!

[ninenot]

Ummmmnnnn.....

It's good news, in the sense that the expansion recorded by ISM REVERSES a 12-month-long decline in the Index.

It's not exactly unalloyed Good News, however: both New York and Chicago area manufacturing indexes dropped, significantly, yesterday. In addition, MZM's rate of growth has gone southeast for the last 12 months, and the Yield Curve continues to flatten. "Durable Goods" increased--until you take out aircraft orders (last month)--after which the category DECREASED by 2+%.

Finally, the Milwaukee Index showed an interesting little item: delivery time (from suppliers) DECREASED; which is not necessarily "good news."

All in all, the MZM number, combined with the continuing flattening of the Yield Curve, is important to watch.

FYI, Manufacturing Employment is still down 8+% and real wages took a small hit, again, last month.

So, as you noted, things are OK. But there are strange wiggles and burps out there.