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ISM vs Lending

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In plain English

ISM manufacturing versus banks tightening lending standards (Senior Loan Officer survey). Factories vs credit supply.

When banks tighten (the lending line rises), credit to firms gets harder even if ISM has not rolled over yet. That combo has been a late-cycle tell.

Math and metrics

FRED NAPM vs DRTSCILM (net % of banks tightening C&I loans to large/medium firms).

left: ISM_t. right: tighten_t (higher = more banks tightening).