The Good and the Bad From the Factory Floor: John Authers

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Cautious Optim-ISM

Global purchasing manager indexes, charted here by Deutsche Bank AG, are back above the 50 level — the threshold between recession and expansion — for the first time in six months:

An air of caution remains, possibly because managers are over-learning the lessons from the pandemic. Bill Adams, chief economist at Comerica Bank, commented that US businesses are adding to inventories more cautiously “to avoid being caught offsides as the broader economy cools.” He said: “The precautionary purchases that businesses made during the shortages and supply ...