Today's numbers are pointing toward a considerable improvement in manufacturing activity in the second half of the year. Inventories are so lean that I can't imagine businesses have enough left to satisfy much of the demand. There's got to be more production.
People don't seem to be so concerned that they're unwilling to commit future income to such purchases. The fact that people are willing to do that speaks much louder about consumer attitudes than what they tell some survey.
A reading as high as 58.5 is consistent with an economy that is growing at a healthy pace. We see encouraging signs of moderating prices, although the vast majority of purchasing managers seem to be facing higher prices.