Following Construction Spending's exuberant 2.2% MoM surge in April (revised to 2.1), May saw a fall-back-to-earth 0.8% gain (still better than expected). However, while Markit's Manufacturing survey tumbled, ISM's rose in May and now in June picked up again to 53.5 - its highest since January. Employment rose notably but New orders were only marginally higher and Production slowed. Rather stunningly, all the improvment in ISM is seasonal adjustments with the non-seasonally-adjusted data at its lowest since January. The question remains, is this good news enough to warrant a September rate cut - if we ignore everything else that is weak?

The excitment is over... but still rising

As ISM jumps in the face of Markit's survey tumble...

Under the covers the story is mixed at best...

As production plunged...

Wondering how ISM Manufacturing is so high? Simple - Seasonal Adjustments

Charts: Bloomberg