The Chicago PMI or Purchasing Managers Index fell 3.2 points in April to 50.4 as new orders slipped, rising fuel costs helped to drive prices paid higher but again inflation or increasing prices remain muted.
The economic growth estimates for the second quarter are out. The Blue chip consensus is the most optimistic as per usual pegging growth at 2.3%, followed by the Atlanta Fed’s GDPNow with 1.8% growth. The New York Fed figures growth will be just .8% in the second quarter. Given the clearly softening incoming data I’ll put my money on the New York Fed at this juncture. Despite all this there’s no shortage of pundits that actually figure the Fed is going to hike interest rates twice during the quarter, don’t hold your breath.
This is Caleb Lawrence Registered Investment Adviser Inc. Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.