Depressed Purchasing Managers

(1) M-PMI distressing, while NM-PMI disconcerting. (2) Average PMI at 50.2, well above recession level of 45.8. (3) Consistent with 1.5% real GDP growth. (4) Some hard data on production and orders confirm weak average PMI; hard data on employment not so much. (5) The Fed isn’t done easing, as Powell wants to keep us in “a good place.” (6) Fed may be aiming to avert an inverted yield curve. (7) No recession in credit-quality spreads. (8) Weak PMIs bad for S&P 500 revenues growth but good for prospects of Fed easing. (9) PMIs explain Growth vs Value performance derby. (10) Emerging markets' PMIs showing some life; advanced economies not so much.