ISM Manufacturing Unexpectedly Soars As ‘Supplier Delivery Times’ Spike

After yesterday’s debacle in Markit’s US Manufacturing PMI (which rose against expectations of a drop thanks to supplier delivery times rising being judged as a ‘positive’ instead of a clear negative due to trade flow disruption on lockdowns), analysts expected ISM’s Manufacturing survey to signal further deterioration occurred in December (unless slow supplier delivery times are also attributed as a positive).

As hard data has declined aggressively, Manufacturing PMI is at its highest since 2014 while ISM’s Manufacturing survey prints at 60.7 – smashing expectations of 56.8 and well above the 57.5 in November…

Source: Bloomberg

And this is why – Supplier Delivery Times are rising fast…

…and as far as the models are concerned that must be an indication of huge demand… rather than disruption in the global supply chain

Source: Bloomberg

We await the correction from ISM to “fix” this issue and downwardly revise ISM once again.