ISM Manufacturing and ISM Prices will indicate disinflation that is decelerating to deflation
Special Correspondent
Feb. 1, 2007

Analysts expect the ISM Manufacturing index to come at 51.8 slightly above the previous reading of 51.4. The analytics and quantitative models tell a different story. Like Chicago index, ISM Manufacturing index will fall below 50. The ISM Prices index will fall to 46 from 47.5 in the last month’s data. Both will show deflation is in full force.

The inflation is sector specific. Close to a dozen sectors in the economy are experiencing inflation – heavy inflation. Sectors are those where people have to spend to live a decent life like health care, higher education, school systems (real estate taxes) and so on. The rest of the economies are in disinflation. That disinflation is now starting to move towards deflation.

ISM Manufacturing and ISM Prices will indicate disinflation that is decelerating to deflation

ISM Manufacturing and ISM Prices will indicate disinflation that is decelerating to deflation
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Like Chicago index, ISM Manufacturing index will fall below 50. The ISM Prices index will fall to 46 from 47.5 in the last month’s data. Both will show deflation is in full force.
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