We’ll see if it is the cruelest month. For now, month-to-month GDP continues to develop in February, albeit slowly (0.2% m/m) whereas January progress has been revised upwards.
Determine 1: Nonfarm payroll employment, NFP (darkish blue), Bloomberg consensus of 4/3 (blue+), civilian employment (orange), industrial manufacturing (purple), private revenue excluding transfers in Ch.2012$ (inexperienced), manufacturing gross sales and commerce in Ch.2012$ (black), consumption in Ch.2012$ (gentle blue) and month-to-month GDP in Ch.2012$ (pink), GDP (blue bars), all log normalized to 2021M11=0. Supply Q3: BLS, Federal Reserve, BEA 2022Q4 third press launch by way of FRED, S&P Global/IHS Markit (born Macroeconomic Advisors) (4/3/model 2023) and creator’s calculations.
The present estimate is due primarily to stock accumulation; ultimate gross sales have been secure. S&P Market Intelligence notes that, mixed with their quarterly GDP monitoring forecast, implied month-to-month GDP in March is down 0.2% m/m.
The month-to-month GDP might be revised subsequent month, so one wonders what weight to present to this collection. Determine 2 exhibits the evolution of month-to-month GDP over totally different vintages.
Image 2: Month-to-month GDP for April 3 (blue), March 1 (tan), February 1 (inexperienced), December 1 (purple), October 4 (gentle inexperienced), in billion Ch.2012$ SAAR (log left scale) and index of coincidence (blue, proper logarithmic scale). Supply: S&P Market Intelligence (varied points) and Philadelphia Fed.
This means no recession to me till February. No assure for the longer term.
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