2024-04-04 15:00:00 ET
Summary
- The final PMI data for US manufacturing showed the production cycle moving up a gear at the end of the first quarter, but also indicated that pricing power has likewise revived, especially in relation to consumer goods.
- Coming as the Federal Reserve seeks to pivot to looser policy, these two developments underscore the likely bumpy path in bringing inflation down to the Fed's 2% target.
- Worryingly, from a consumer inflation perspective, the steepest rise in prices reported in March was recorded in the consumer goods-producing sector, where the rate of inflation hit a 16-month high.
The final PMI data for US manufacturing showed the production cycle moving up a gear at the end of the first quarter, but also indicated that pricing power has likewise revived, especially in relation to consumer goods. Coming as the Federal Reserve seeks to pivot to looser policy, these two developments underscore the likely bumpy path in bringing inflation down to the Fed's 2% target....
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Final PMI Signals Fastest U.S. Factory Production Growth Since May '22, Steeper Price Rise