The good news, a robust reading of 61.2. As I've said, 50 is neutral, 55 + is strong, 60+ is amazing. New Orders and backlog are through the roof as the economy opens up. The bad news? Not enough people want to work. If we resolve that, we could have one of the most bullish summers in recollection.
"The numbers: American manufacturers have been flooded with new orders for cars, computers, furniture, appliances and all sorts of goods, but they are struggling to keep up amid widespread shortages of supplies and labor.
The Institute for Supply Management said its manufacturing sector index rose to 61.2% in May from 60.7% in April.
Yet production and hiring actually slowed and companies fell further behind in filling new orders, the institute said. Backlogs rose to the highest level on record."
My wife runs an electroplating shop and says that they have 25 people apply every week............but none of them show up.
Guess what that means?
They are all on unemployment and required to apply for jobs............but have no intention of working but just want to collect unemployment.
She insists that anybody that wants to work would be working already in this environment. The rest want to collect unemployment.
I read a study about unemployment in Denmark. They offered up to 5 years, and found that magically, after 5 years, people found work. So they lowered it to 4 years. And after 4 years, people found work.
When you subsidize something, you get more of it. Tax it, you get less.