GDPNow

No Recession In Services

Oct 5, 2022 1 min read

Following today's release of September's nonmanufacturing purchasing managers index (NM-PMI), the Atlanta Fed's GDPNow tracking model revised Q3's growth rate from 2.3% (saar) to 2.7%. Consumer spending and real-gross private domestic investment were revised higher from 0.7% to 1.1% and from -4.1% to -3.6%. The next recession might be the most widely anticipated recession that doesn&

Ed Yardeni

Mixed Messages From Manufacturing & Housing

Aug 16, 2022 1 min read paid

July was a good month for manufacturing and a bad one for the housing industry. Industrial production, which is one of the four components of the Index of Coincident Indicators, rose 0.6% m/m to a new record high during July (chart). Housing starts tumbled during the month. Building permits, which is one of the 10 components of the Index of Leading Indicators, also fell during July. There'

Ed Yardeni

Plenty of Sunshine In Q3's GDPNow & July's CPI

Aug 10, 2022 1 min read paid

There's lots of sunshine in the Atlanta Fed's GDPNow tracking model. Today's estimate shows that real GDP is rising at a 2.5% pace (saar) during Q3 (table). Consumer spending is tracking at 2.7%. It is looking like an up quarter for capital spending, government outlays, and exports so far. The downers, so far, are residential investment, imports, and the change in private

Ed Yardeni

Leading Indicators Up, GDP Revision Down

Jun 7, 2022 2 min read paid

We have a mix of good and bad news this morning for you. We will start with the good news: Two of our favorite leading economic indicators—i.e., payroll employment in truck transportation and in temporary help services—rose to new record highs during May, according to Friday’s employment report (charts below). Both are highly correlated with the Index of Leading Economic Indicators, which is available through April.

Ed Yardeni

Mixed Indicators Showing Slowing Economic Growth

Jun 3, 2022 2 min read

We are seeing some very odd divergencies between the averages of the regional business surveys conducted by five Federal Reserve Banks and the national survey of manufacturing purchasing managers conducted by the Institute for Supply Management. In the past, the regional and national indexes for overall business, new orders, and employment tracked one another very closely. Now, not so much: (1) During May, the regional composite index fell to 0.

Ed Yardeni

No Recession in GDPNow Tracking Model

May 30, 2022 1 min read

There’s no recession apparent in the May 27 update of the Atlanta Fed’s GDPNow tracking model for Q2. The real GDP growth “nowcast” was revised up slightly to 1.9% (saar). Consumer spending is tracking at a solid 4.8%. Business spending on equipment was revised down sharply to only 2.8%. Weighing most on Q2 economic activity in the Atlanta Fed model is a 5.6% decline

Ed Yardeni