If you\u2019ve been watching blogs such as Spend Matters and Supply Excellence, you know that I am a critic of the Institute for Supply Management\u2019s Purchasing Manager\u2019s Index as an economic indicator.<\/p>\n
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But, finally, some financial analysts are realizing how suspect (at best) ISM\u2019s index really is. In today\u2019s New York Times\u2019 article entitled \u201cDow Plunges of Survey of Business,\u201d Julian Jessop of Capital Economics said \u201cOne extreme number on its own is not a reliable recession signal\u2026It is so out of line with other January indicators that it is hard to know whether or not to believe it.\u201d<\/p>\n
I don\u2019t doubt that the economy is experiencing a slowdown. But the crazy drop in the ISM index (over 16% from December 2007 to January 2008) is simply outlandish.<\/p>\n
I\u2019m glad that the financial analysts are finally starting to see the flaws in ISM\u2019s index. I think that in the near future either ISM will make some changes to its index to make it a better indicator or Wall Street and the media will stop paying attention to it.<\/p>\n","protected":false},"excerpt":{"rendered":"
If you\u2019ve been watching blogs such as Spend Matters and […]<\/p>\n","protected":false},"author":12,"featured_media":4102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n