The Milwaukee Company’s Economic Briefing Report is a weekly summary of economic indicators that have the potential of impacting stock and bond markets.  Readings associated with a high level of risk for a number of the indicators listed below could suggest an elevated risk of a U.S. recession, and therefore a higher level of market risk.  This Report is for informational purposes only and should not be regarded as a substitute for independent research and personalized investment advice.

 

Comments on this week’s report:

  • Despite a large increase in treasury yields, spreads remained virtually unchanged with only the 10-year and 3-month spread narrowing by 4 basis points.
  • Inflation, measured by the core Consumer Price Index (CPI), slightly slowed down from the month prior but still remains comfortably near the Fed’s 2.0% target.
  • Total business inventories experienced a moderate drop from the month prior but still remains at a comfortable level.
  • Commercial and industrial loans also experienced a moderate decrease from the month prior yet still indicates a low amount of risk.
  • The Chicago Fed National Activity Index (CFNAI) remains above zero, indicating that the economy is expanding slightly above its historical average.

Please Note:  Due to various factors, including changing market conditions, this content may no longer be reflective of current opinions or positions.