- S&P Global published PMI data indicating expansion in the manufacturing sector.
- The Federal Reserve relies on S&P Global for manufacturing sector data.
S&P Global Indices Hit Multi-Year Highs Amid Inflation and Rate Hike Expectations
- Reports
- 4
- Developments
- 1
- Repetition
- 75%
New informationRepeats or wire copies
What happened
S&P Global reported that its flash gauges for manufacturing and services industries reached multi-year highs, with the composite index rising to 58.4. Simultaneously, S&P Global noted its overall inflation measure hit its highest level since October 2022, driven by rising wages and higher fuel and transportation costs. These strong economic readings and inflation pressures led to a surge in U.S. Treasury bond yields, with the 10-year yield jumping 15 basis points to 5.12 percent.
From cnbc.com, theepochtimes.com
Why it matters
The robust activity in the manufacturing and services sectors, according to S&P Global, has accelerated U.S. business conditions. This strong growth, combined with intensifying inflation, prompted Fed Governor Michael Barr to state that further policy adjustments are likely needed to meet price stability targets. The increased expectations for Federal Reserve rate hikes drove up borrowing costs across the Treasury curve.
The Federal Reserve uses S&P Global's manufacturing sector data to inform its policy decisions.
From cnbc.com, theepochtimes.com
Who's involved
- FEDThe Federal Reserve, which sets monetary policy for the United States.
- S&P GlobalS&P Global, which published the flash gauges and inflation metrics on U.S. business activity.
- Chris WilliamsonChris Williamson, Chief Business Economist at S&P Global, who commented on U.S. business conditions.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FEDSpeculative
The Federal Reserve might implement further policy adjustments to ensure inflation comes down to target.
Keep exploring
The entities involved
-
FED
business
-
S&P Global
American publicly traded corporation, formerly McGraw Hill Financial, Inc
Related events
- Fed policy impacts market data reported by S&P Capital IQ during the Jackson Hole gathering.
- S&P Global data indicates growth momentum in the UK PMI, leading to a hawkish stance from the Bank of England.
- Fed policy decisions affect global markets.
- Fed policy is affecting global investment sentiment, with Asian markets reacting to differing growth rates.