The impact of new tariffs and the anticipation of new ones on imported goods, especially raw inputs, showed up in the ISM Manufacturing data for February with the prices paid subindex rising to the highest level since June 2022. The subindex rose to 62.4 from 54.9 in the prior month, the Institute for ... READ MORE >
USA
Market minute: Credit availability and consumer expectations
Professional investors often focus on inflation expectations, which is understandable given the role it plays in determining actual inflation. But there is far less focus on consumer expectations around credit availability. Despite a strong jobs market and rising real wages, expectations around the ... READ MORE >
5 things to know in life sciences: Week of Feb. 24, 2025
Each week we highlight five things affecting the life sciences industry. Here's the latest. Biopharma sector reports strong earnings According to Fierce Pharma, the biopharma industry experienced strong revenue growth in the fourth quarter of 2024, with 21 out of 22 major companies reporting ... READ MORE >
January PCE index: Strong income gains amid elevated inflation
Turn-of-the-year issues were on display in the January personal consumption expenditures price index data that showed inflation rising at 2.5%, well above the central bank’s 2% target. Friday’s report will keep the Federal Reserve on the sideline with any rate cuts until the second half of the ... READ MORE >
Market minute: Rising short-term inflation expectations
This morning, we get the January personal consumption expenditures price index, which I expect to show a 2.5% increase in both the top line and core inflation pace on a year-ago basis. But given the general uncertainty around trade policy, one should begin looking more closely at short-term inflation ... READ MORE >
Jobless claims rise as durable goods data is mixed
Initial jobless claims spiked last week, rising to 242,000 from 220,000 for the largest increase since September. While the government layoffs contributed to the increase, new filings for jobless benefits in Washington accounted for only about 2,000 of the 22,000 overall increase. The overall ... READ MORE >
Market minute: The growing complexity of U.S. supply chains
As the global trade and financial system enters an era of rising uncertainty, it is critical that firms understand the complexity of the supply chains they depend on to navigate this change. RSM has undertaken a project to both define and measure that complexity to better understand how it has evolved ... READ MORE >
Market minute: Is the fight against PCE inflation like waiting for Godot?
Risks are increasing that disinflation has run its course and that U.S. top-line and core inflation will flatten out near 2.5%. Already, the Federal Reserve has pushed back to 2027 its estimate of when it expects the personal consumption expenditure price index, its preferred gauge of inflation, to ... READ MORE >
Market minute: The impact of China’s ailing property markets
One of the major differences between the United States and China in the current trade conflict is that the Chinese economy is ensnared in a long-term deleveraging crisis in its real estate markets. The Chinese Real Estate Climate Index, released by China's National Bureau of Statistics, stands at ... READ MORE >
Supply chain issues limit growth among major data center hyperscalers
Supply chain constraints are limiting revenue growth among the largest U.S. data center developers—known as hyperscalers—and threatening the United States’ progress in artificial intelligence innovation, according to recent company earnings calls. A limited supply of chips, electricity and land underlies ... READ MORE >