Business Activity, New Orders, and Fed Deliberations
The Business Activity Index’s rise to 57.2 percent and the New Orders Index’s increase to 56.1 percent demonstrate resilience in the services sector. However, these figures, reflecting moderate growth, might lead the Fed to deliberate on rate cuts as a means to stimulate more robust economic activity.
Employment and Supplier Deliveries: Key Considerations for the Fed
The Employment Index’s fall to 48 percent could be a critical factor for the Fed, as it indicates a contraction in employment. This, combined with faster supplier deliveries (Supplier Deliveries Index at 48.9 percent), may signal to the Fed an opportunity to lower rates to boost employment and economic activity.
