Consumer Sentiment Remains Stagnant
5 minutes in the past
Consumer sentiment remained largely unchanged in March, one report confirmed perceptions of the financial system stay largely stagnant.
The University of Michigan’s Consumer Sentiment Index dropped to 76.5 in March, a lower that fell inside the margin of error for the survey. The index got here in decrease than projections of 77.4, in keeping with a survey of economists carried out by the Dow Jones Newswires and the Wall Street Journal.
Consumer inflation expectations ticked barely increased in February, with survey respondents anticipating year-ahead inflation to come back in at 3.0%, whereas five-year inflation expectations remained at 2.9%. Federal Reserve officers intently watch shopper inflation expectations when contemplating rate of interest modifications.
Overall, customers’ opinions of the financial system have largely fallen someplace between the pre-pandemic highs and the lows when inflation peaked in summer season 2022, mentioned Joanne Hsu, the survey director.
“After strong gains between November 2023 and January 2024, consumer views have stabilized into a holding pattern; consumers perceived few signals that the economy is currently improving or deteriorating,” mentioned Hsu, including that many are withholding judgment on the financial system till the outcomes of November’s election.
-Terry Lane
Industrial Production, Capacity Utilization Little Changed in February
46 minutes in the past
Industrial manufacturing moved barely increased in February, with manufacturing and mining each leaping, whereas capability utilization remained regular, in keeping with Federal Reserve information launched right now.
The Federal Reserve’s industrial manufacturing index moved increased by 0.1% in February to succeed in 102.3, whereas the index nonetheless got here in barely beneath the year-ago ranges. Economists have been anticipating no motion within the index.
Manufacturing output climbed 0.8% within the month, whereas mining surged by 2.2%, each transferring increased after weather-related points affected January’s outcomes.
Slower shopper spending could possibly be weighing on manufacturing, wrote Bernard Yaros, Oxford Economics’ lead U.S. economist.
“High-tech manufacturing will stay on a tear because of cloud computing, synthetic intelligence, fiscal coverage, and business funding in labor-saving expertise,” Yaros wrote.
-Terry Lane
New York Manufacturing Falls ‘Significantly’ in March
1 hr 51 min in the past
Business exercise in New York fell in March, pushed decrease by a drop in new orders and shipments as producers lower their payrolls.
The Empire State Manufacturing Survey got here in at -20.9 for March, with the New York Federal Reserve report dropping 18.5 factors within the month.
“Manufacturing activity fell significantly in New York State in March, with a decline in new orders pointing to softening demand,” mentioned Richard Dietz, financial analysis advisor on the New York Federal Reserve. “Labor market conditions remained weak as both employment and hours worked decreased.”
The survey confirmed that new orders fell practically 11 factors, whereas shipments fell almost 10 factors. The variety of staff fell roughly seven factors, with the info pointing to declines in hours labored.
New York producers are nonetheless anticipating business situations to enhance within the six months forward, with that index little modified in March at 21.6.
“Firms expect conditions to improve over the next six months, though optimism continued to be subdued,” the report mentioned.
-Terry Lane
