As expected from the prior inflation reports with CPI and PPI, the PCE index had also shown the same corollary among its data points, reporting a higher than expected increase for the month of February across all products.
In addition, the Chicago PMI had shown a declining trend of activity among businesses for the 6th week in a row. All this points to that there might be a case for the Federal Reserve to continue holding rates in the next rate decision coming up in the summer of 2024. There has been much speculation that the Federal Reserve will begin cutting rates at this time; however this is evidence of the contrary.
Consumer Sentiment Reports
The numbers: The final reading of consumer sentiment in March rose to a 32-month high, as Americans expressed more confidence that inflation would ease and reduce the financial strain on households. The second of two readings of the consumer-sentiment survey climbed to 79.4 from an initial 76.5.
Chicago PMI
The Chicago Business Barometer, also known as the Chicago PMI, weakened further in March, dropping to 41.4 from 44 in the prior month. This is the fourth straight monthly decline. Economists polled by the Wall Street Journal forecast a 45 reading.
PCI Index
Prices in the U.S. rose again in February based on the Federal Reserve’s preferred PCE index, reinforcing the view that inflation might not slow as much in 2024 as previously believed. The PCE index rose 0.3% last month, the government said Friday. That’s a touch below the 0.4% forecast.
Primary Mortgage Market Survey Index
• 15-Yr FRM rates are seeing a decrease by -0.10% with the current rate at 6.11%.
• 30-Yr FRM rates are seeing a decrease by -0.08% with the current rate at 6.79%
MND Rate Index
• 30-Yr FHA rates are seeing a -0.07% decrease for this week. Current rates at 6.39%
• 30-Yr VA rates are seeing a -0.06% decrease for this week. Current rates at 6.41%
Jobless Claims
Initial Claims were reported to be 210,000 compared to the expected claims of 214,000. The prior week landed at 212,000.
What’s Ahead
This upcoming week has very little in the way of valuable reporting data. The following after next will contain further inflation data with the release of CPI and PPI reports. The only report that should be noted is the U.S. Trade Balance reports.