While backward-looking US gross domestic product (GDP) estimates are so far showing surprising resilience for the fourth quarter (Q4) of 2022 in the face of Federal Reserve (Fed) rate hikes, the flash purchasing manager’s index (PMI) data is an early warning that all is not well in corporate America, according to S&P Global Market Intelligence. Any further weakness in January would add fuel to recession worries.The recent PMI data from S&P Global have been mostly gloomy and have signaled a marked cooling in the rate of employment growth. In December the composite output index covering manufacturing and services hit the second-lowest since the global financial crisis if early pandemic lockdown months are excluded, S&P Global Market Intelligence’s Chris Williamson wrote in an article on its website.
The manufacturing sector input cost index has fallen sharply in recent months.
While backward-looking US GDP estimates are so far showing surprising resilience for 2022 fourth quarter in the face of Federal Reserve rate hikes, the flash purchasing manager's index data is an early warning that all is not well in corporate America, said S&P Global Market Intelligence. Any further weakness in January would add fuel to recession worries.
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