Today saw the release of the December ISM report, the first real soft data since the Fed confirmed the hiking cycle is over. Overall manufacturing ticked up, contracting at a slower rate than in previous months, suggesting the beginnings of a turnaround.
We closely track developments in production to understand how the economy is reacting to changing policy and conditions.
As part of our project to monitor the supply side, we closely track each month’s new data. The PPI release is key for understanding how inflationary pressures propagate through the costs that firms face for intermediate inputs.
It is clear from this month’s manufacturing commentary that an industrial slowdown may be afoot.
With apologies for delay over the Thanksgiving holiday, we present the data recap for Industrial Production.
