Exactly right. PMI is a lagging indicator because it only shows a snapshot of “today”. A leading indicator such as Factory Capacity Utilization is a better predictor of economic growth because manufacturing companies do no invest in new plant and equipment or hire more workers when they are sitting on lots of idle capacity.
Manufacturing capacity utilization is nearing 80%, compared to a low of 63% i the Obamanation. With the market and money supply as it is and with the tarrifs increasing demand for US-made goods, there is no indication of a slowdown, and in fact there will be continued growth.
Remember the old expression, “lies, damned lies, and statistics”!
>>>A leading indicator such as Factory Capacity Utilization is a better predictor of economic growth
Since you cite it as a leading indicator, what are the implications of the decline in capacity utilization that has taken place since December 2018?
Https://fred.stlouisfed.org/series/MCUMFN