Below is a chart and brief excerpt from today's Early Look written by Macro analyst Christian Drake.
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The Fed Regional Services Surveys have been in contraction for 13 consecutive months and both the ISM and S&P Services PMI have been a textbook series of lower-lows with some month-to-month chop. In case it’s not clear (which it is), demand conditions have long re-commandeered the driver’s seat from the supply-side with respect to being the primary influence on price trends across the goods economy. And as we highlighted, again, last week … The services economy continues to faithfully follow the trajectory of the goods economy on a lag. |
