US manufacturing activity at four-year high, supply constraints growing - Reuters
1 min readAnalysis by AlgoThesis Editorial Desk
The story
US manufacturing ISM or equivalent survey has hit a four-year high, signaling a broadening economic expansion, while supply constraints are re-emerging as demand outpaces capacity. Rising input costs and tightening supply chains create a stagflationary undertow that could pressure margins for goods-consuming sectors while boosting pricing power for industrials and commodity producers.
The two-sided take
3 of 4 names have verified EOD history. The basket chart is hidden rather than showing illustrative data.Missing: DXY
The house read
Wrong ifIf supply constraints spike input costs faster than revenues, industrial margins compress and XLI lags; a sudden risk-off shock or Fed dovish pivot kills the short-TLT leg and blows up both sides of the trade.
Published read · research, not advice
