After a huge reported drop in the Chicago PMI on Thursday, today's ISM Manufacturing report surprised to the upside. While economists were expecting a level of 56.0, the actual reading came in at 57.1, which was up nearly two points from last month's reading of 55.3. After this month's increase the ISM Manufacturing Index is sitting at its best level since April 2011.
Looking at the internals of this month's report shows a pretty positive picture. Of the ten components to the report, six increased relative to June while four declined. The biggest increases this month came from Employment and New Orders, and in the case of Employment, that index rose to its highest level since June 2011. On a year/year basis, the internals were even stronger with seven components rising and three declining.