MANUFACTURING MIRAGE

Many economic pundits are excited that the ISM Manufacturing PMI, a key manufacturing index, jumped to 49.3 (anything under 50 is contractionary) reaching its second-best reading since late 2022. Hold on to the corded kitchen telephone. It’s up because EV buyers are racing to purchase before Trump eliminates buyer subsidies, and importers and exports are massively pre-ordering and building inventories to front-run tariffs. The rise will, unfortunately, probably be short-lived.