Economic Indicator -- Delivery Delay

In a robust economy delays of materials and goods to manufacturers rises as vendors struggle to
meet demand. In a downtrending or weak economy, manufacturers experience far fewer delays
as vendors have supplies and are eager to ship. The ISM provides a monthly reading of % of
purchasing managers experiencing delays in deliveries of materials. ISM D / D % Chart

the D / D % for mfrs. has dropped to below 50% for the first time since the economic recovery
began in 2009. That is a warning sign of slower orders in the system. Note that the series is
volatile and does give false signals. Even so, it is a decent indicator of longer term trend and we
have to watch it carefully now to see if  a recovery of delivery delays is on tap or whether
economic momentum is set to remain sluggish.