All Posts Tagged: May
The minutes of the April FOMC meeting put the markets on notice that another rate hike is coming in June or soon thereafter, but will the U.S. economy cooperate between now and then?
For more details about what’s going on, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on May 20.Key observations:
- Real GDP is on track for a 2.4% increase in the second quarter.
- Manufacturing PMIs so far for May point to a renewed slowing in manufacturing activity.
- Employment in manufacturing is now contracting year-over-year.
- Manufacturing headwinds remain, including sluggish global growth, bloated inventories, and the strong dollar, though we see those headwinds gradually fading as the year progresses.
- It won’t be until 2017 before we see a measurable improvement in manufacturing activity.