U.S. Outlook: No sign of an April bounce so far
We are just starting to get some U.S. economic indicators for April, but the preliminary signs are that weaker-than-expected data visible in March may be carrying over.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on April 21.Key observations:
- While industrial production growth in March exceeded economists’ estimates on gains in utilities production, the manufacturing production measure unexpectedly declined 0.4% last month.
- Mortgage lending trends have also been less than stellar in April.
- While the soft patch in economic activity appears to be lingering into April, there is no need to abandon expectations for somewhat stronger economic activity in the second half of the year.
- There is little reason to expect significant change in the Fed’s roadmap for additional fed funds rate hikes this year and next.