PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Good News on the Economy from the Institute for Supply Management

By at 5 March, 2019, 9:32 pm

by Raymond J. Keating-

The two latest takes on the economy from the Institute for Supply Management (ISM) provide a double hit of generally good news on the economy.

First, on March 1, the ISM’s manufacturing index reported that the manufacturing sector grew in February for the 30th straight month, while also pointing out that the economy grew for the 118th consecutive month. And while manufacturing strength continued in February, it was softer than in the prior month.

Second, the latest take on the ISM’s non-manufacturing index was reported on March 5, and it noted that the non-manufacturing sector grew in February for the 109th consecutive month. For good measure, the non-manufacturing sector of the economy showed greater strength in February compared to January.

As noted in the report:

“The non-manufacturing sector’s growth rate rebounded in February after cooling off in January. Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, they remain mostly optimistic about overall business conditions and the economy.”

While government can always do something misguided that undermines economic growth, talk in some circles of a recession arriving soon seems to be far off the mark.

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

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