Manufacturing PMI Hits New Record, Americans Resign in Droves, and a Look at Monetary Policy Across the Globe
June 25, 2021 | FIRESIDE CHARTS
Inflation continues to climb in the U.S. as the Market Manufacturing PMI hits a new record on the back of revitalized demand, persistent and extreme supply chain bottlenecks, and soaring producer prices. This morning’s PCE report saw the Fed’s preferred inflation measure climb to an annualized 3.9%—nearly double the 2% target and its highest annual rate since 2008—but what does the services sector have to say on the matter? Meanwhile, unemployment ticked lower this week after last week’s surprise bump, but resignations have soared to a record high as workers seek out greener pastures. How many are planning to set up shop at one of the many new unicorns formed in recent years? Finally, manufacturing growth and inflationary pressures are crossing borders, and global economies are responding—take a look at the charts for a global view of the monetary policy landscape.
1. Pent-up demand from the pandemic and the stimulus drove the U.S. PMI to a record high last month:
Source: The Daily Shot, from 6/24/21
2. Coupled with supply chain issues, prices continued to increase:
Source: The Daily Shot, from 6/24/21
3. However the services PMI, which reflects a much larger segment of the economy, backed off last month:
Source: The Daily Shot, from 6/24/21
4. Will part of the economic normalization include packing two years’ worth of resignations into one?
Source: St. Louis FRED, from 6/25/21
5. A robot could never replace me…
Source: BofA Global Research, from 6/25/21
6. A sign of the times or the sign of a bubble?
Source: The Daily Shot, from 6/25/21
7. The manufacturing boom is a global phenomenon. Here is Europe’s composite PMI:
Source: The Daily Shot, from 6/24/21
8. …As are the inflationary pressures:
Source: IHS Markit, from 6/24/21
9. Is Mexico’s surprise rate increase a sign of what is to come? They are not the first:
Source: Bloomberg, from 6/24/21
Disclosure: The charts and infographics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.