Wealth Management Services

Making Sense: In Brief

The week ahead for markets and the economy

Phil: Last week, markets digested a litany of economic data, a better-than-expected employment report and comments from Fed Chairman Powell.

Looking to the week ahead, the October factory orders report comes out on Monday. As the ISM Manufacturing Survey reminded us last week, manufacturing activity is moderating in the US as the global economy slows. That said, factory orders are expected to increase modestly in nominal terms. The ISM Services Index is also released on Monday. The survey gives a good indication of underlying activity in the services sector. It is expected to moderate but remain above the important 50 break-even level, indicating continued expansionary activity.

On Friday, we get the Producer Price Index. While not as closely watched as consumer inflation, the PPI does provide data on inflation at the producer level. Much like consumer inflation, the PPI is expected to remain elevated but moderate on a year-over-year basis.

Also on Friday, we get the University of Michigan Consumer Sentiment survey. While sentiment has improved since the summer when gasoline prices peaked, consumers remain in a lousy mood, thanks in large part to inflation. That is unlikely to change in this report.

So, items to watch. One, factory orders. Two, ISM Services. Three, PPI. Four, consumer sentiment.

Making Sense In Brief Outro Slide

Brent Ciliano

CFA | SVP, Chief Investment Officer

Capital Management Group | First Citizens Bank

8510 Colonnade Center Drive | Raleigh, NC 27615

brent.ciliano@firstcitizens.com | 919-716-2650

Phillip Neuhart SVP, Director of Market and Economic Research

Capital Management Group | First Citizens Bank

8510 Colonnade Center Drive | Raleigh, NC 27615

phillip.neuhart@firstcitizens.com | 919-716-2403

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