ISM at a glance

"The deflationists will likely get cast aside once again when asset prices respond to the massive inflation that occurred out of 2008 and the one that may be being promoted right now in light of recent deflation talk coming out of high places. It is certainly possible that this is the start of an inflation-fueled rebound. Several indications in my work say "not so fast", Prechter and friends get to hold court for a while longer yet just to make sure the optimal amount of players are on the wrong side of the equation.

But my 'boots on the ground' observation is contrary this idea."  --Boots on the Ground

Next, we'll look at an updated chart of Aloca...

WHAT RESPONDENTS ARE SAYING...  [what I will say is that business remains brisk, with American manufacturing far from dead as the financial types who see through the lens of abstraction have claimed for years]

• "Business in July was strong, the best month since October 2008." (Fabricated Metal Products)
• "Slow economy has killed sales for new equipment orders." (Machinery)
• "Quoting activity and sales are slow, and backlog is dropping." (Computer & Electronic Products)
• "Business continues to be sluggish and has fallen slightly as the economic ills continue." (Nonmetallic Mineral Products)
• "Retailers are still unwilling to gamble on inventory." (Printing & Related Support Activities)

MANUFACTURING AT A GLANCE JULY 2010
Index	Series Index July	Series Index June	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI	55.5	56.2	-0.7	Growing	Slower	12
New Orders	53.5	58.5	-5.0	Growing	Slower	13
Production	57.0	61.4	-4.4	Growing	Slower	14
Employment	58.6	57.8	+0.8	Growing	Faster	8
Supplier Deliveries	58.3	57.3	+1.0	Slowing	Faster	14
Inventories	50.2	45.8	+4.4	Growing	From Contracting	1
Customers' Inventories	39.0	38.0	+1.0	Too Low	Slower	16
Prices	57.5	57.0	+0.5	Increasing	Faster	13
Backlog of Orders	54.5	57.0	-2.5	Growing	Slower	7
Exports	56.5	56.0	+0.5	Growing	Faster	13
Imports	52.5	56.5	-4.0	Growing	Slower	11
OVERALL ECONOMY				Growing	Slower	15
Manufacturing Sector				Growing	Slower	12

*Number of months moving in current direction