PT Solid Gold Berjangka | US Business Activity Picks up in December

01:02 18 December in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Ekonomi AS PMI AS Final Services PMI (US) Flash Manufacturing PMI PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | The provided information indicates a mixed picture of the U.S. economy in December. Here are some key points to highlight:

  1. Composite PMI Increase: The S&P Global Composite PMI Output Index, which tracks both manufacturing and services sectors, increased to a five-month high of 51.0 in December, up from 50.7 in November. A reading above 50 indicates expansion in the private sector.
  2. Sector-Specific Performance:
    • Services Sector Improvement: The improvement in the composite index was driven by the services sector, which saw increased business activity.
    • Manufacturing Sector Decline: In contrast, manufacturing activity declined further, with the flash manufacturing PMI falling to 48.2 from 49.4 in November.
  3. Labor Market and Holiday Shopping Season:
    • Positive Labor Market: The survey followed positive news on the labor market in November.
    • Strong Holiday Shopping Season: Retail sales outperformed expectations in November, indicating a strong start to the holiday shopping season.
  4. Economic Growth Expectations:
    • GDP Growth Estimate Increase: The Atlanta Federal Reserve raised its gross domestic product (GDP) growth estimate for the fourth quarter to a 2.6% annualized rate, up from a previous estimate of 1.2%. The economy had accelerated at a 5.2% rate in the third quarter.
  5. Federal Reserve and Monetary Policy:
    • Interest Rates: The Federal Reserve held interest rates steady and signaled a pause in the historic tightening of monetary policy. Lower borrowing costs are anticipated in 2024.
  6. Inflation and Input Prices:
    • Inflation Increase: With demand picking up, inflation increased, as indicated by a rise in the measure of prices paid by businesses for inputs.
    • Challenges in Passing Costs: Businesses are facing challenges passing on increased costs to consumers.
  7. Economic Outlook:
    • No Expectation of Recession: Economists do not expect a recession in the coming year.

In summary, the U.S. economy shows signs of resilience, particularly in the services sector, with positive developments in the labor market and retail sales. However, challenges persist, especially in the manufacturing sector, and inflation is a concern for businesses. The overall economic outlook remains cautiously optimistic, with the Federal Reserve signaling a more accommodative stance in monetary policy.