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The S&P Global Composite PMI (Purchasing Managers' Index) preliminary print for July came out higher than expected at 55, with manufacturing PMI falling to 49.5 and services PMI rising to 56.
This new piece of economic data, relatively in line with expectations, shows more signs that inflation may be on the path to the 2% target goal the Federal Reserve is looking for. What does this mean for the economy and for investors?
JP Morgan global market strategist Hugh Gimber joins Catalysts to give insight into the recent PMI data and what it means for the Fed and for the broader market (^DJI, ^IXIC, ^GSPC).
"What this really tells me is that the path to a soft landing for the Federal Reserve is still open, but it is increasingly narrow because when we start to analyze all of this economic data that's coming through, what you're looking for is the perfect combination of growth holding up just well enough to keep the economy moving forward, but not too well, and reigniting inflationary pressures," Gimber says. "And so when we translate that into how we think the Federal Reserve will be moving over the coming quarters, I think the case for them to start lowering interest rates is quite clear at this point."
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This post was written by Nicholas Jacobino