ISM Manufacturing Index
After a strong rebound in the second quarter, the momentum in the industrial sector is showing signs of slowing. While still in growth mode, the recent ISM Index fell slightly, to 55.4%. This may be setting the pace for economic growth trends for the rest of the year and into 2021. While the industrial sector is only 10% of GDP, it is a reasonable proxy for overall demand.
Initial Unemployment Claims, 4-Week Moving Average
Unemployment trends continue to improve. The overall unemployment rate fell to 7.4% in the most recent survey, while the 4-week average of unemployment insurance claims fell to 811,250 new filings. This remains far above the levels of 2019 and early 2020. Given continuing COVID-19-related constraints, the unemployment level is expected to be well above normal into 2021.
The information herein was obtained from various sources believed to be accurate; however, Forté Capital does not guarantee its accuracy or completeness. This report was prepared for general information purposes only. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities, options, or futures contracts. Forté Capital’s Proprietary Market Risk Barometer is a summary of 30 indicators and is copyrighted by Forté Capital LLC. For further information, visit www.fortecapital.com, send a message to [email protected], or call 866-586-8100 and ask for David W. Henion, CPA, or Larry H. Rabinowitz, CPA/PFS.