U.S. Outlook: A stronger October if you believe the PMIs
October’s Purchasing Manager Indexes (PMIs) and employment report are two big factors in the economy right now, and I discuss their influences in this week’s U.S. Outlook report.
Below is a brief summary followed by a link to the full report, delivered on Nov. 8, 2013.Key observations:
- U.S. economic momentum may have outweighed the October drop in consumer confidence and the government shutdown.
- October Purchasing Manager Indexes suggest a global manufacturing rebound from U.S. to China and Europe.
- If October payroll strength continues in November and December, the Fed will likely begin tapering of monthly asset purchases in January.
- Fed tapering could slow U.S. housing and auto sales and create financial instability in some emerging market economies as capital outflows resume.
To read my remarks in full, check out this week’s US Outlook Report. (Chart from Bureau of Labor Statistics)