The ISM Manufacturing Index is expected to post a marginal decline to 56.2 in Monday’s November update (scheduled for release on Dec. 2), based on The Capital Spectator's average econometric forecast. The estimate compares with the previously reported 56.4 for October. Meanwhile, the Capital Spectator's average projection is moderately higher than a pair of consensus forecasts for November via surveys of economists.
Here's a closer look at the numbers, followed by brief summaries of the methodologies behind The Capital Spectator's projections:
VAR-6: A vector autoregression model that analyzes six economic time series in context with the ISM Manufacturing Index. The six additional series: industrial production, private non-farm payrolls, index of weekly hours worked, US stock market (S&P 500), spot oil prices, and the Treasury yield spread (10 year Note less 3-month T-bill). The forecasts are run in R with the "vars" package.