The National Manufacturing Survey came in at 50.6, meaning that slightly more manufactures saw expanding conditions rather than contracting ones. The consensus of business economists was around 48 and of course I was bracing for a much worse number. 40 would not have shocked me.

We saw deterioration in every regional survey and of course the horrible Philly Fed number. This lead me to believe we would be getting a bad national number.

However, with this number we should expect that manufacturing workers will be added when we see payrolls tomorrow and it sharply decreases the odds of double dip.

The auto sales reports for August should be rolling in today. I would expect and we really want to see even more rebound from July.

FRED Graph