Publication date: March 21, 2025
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The week ahead: Purchasing Managers' Index and personal spending US
In Money Care's weekend bulletin, we present you with the overview of the listed companies that will release figures in the coming week. In addition, you will find the weekly overview of macroeconomic events that may cause movement in the stock markets.
Brief review of last week:
We discussed the US interest rate decision. As expected, the FED did not change interest rates, and much value was placed on the explanation. The FED balances on the dividing line between economic growth and inflation. Growth expectations have been revised downward, but there are also concerns about possible developments in inflation. Therefore, the FED is keeping its powder dry for now and awaits developments in the labor market and inflation. The macroeconomic data in the coming months will, therefore be awaited with additional excitement and interest. Equity markets initially ran up but are now back at the levels they were at before the interest rate decision.
Next week:
No very important figures will be published during this period. However, we may pay attention to the Purchasing Managers' Index (PMI) or the Purchasing Managers' Index in the US. This concerns two indices, namely the purchasing managers in the manufacturing sector and those in the services sector. Both figures will be released Monday at 2:45 p.m. Dutch time.
The PMI indicates how economic activity in a sector is developing. It measures the confidence of purchasing managers and the direction of the economy through a survey of production, orders, employment, inventory levels, and delivery times.
A PMI higher than 50 means growth and expansion of the economy and a PMI lower than 50 means economic contraction or decline. Investors and analysts use the PMI as an important leading indicator because it anticipates broader economic trends.
In addition, we would like to explain the Core Personal Consumption Expenditures (PCE) price index.
This price index is published Friday at 1:30 p.m.
The Personal Consumption Expenditures (PCE) indicates how much U.S. consumers spend on goods and services. This is an important indicator of economic health because personal consumption accounts for nearly 70% of the U.S. Gross Domestic Product.
The PCE Price Index is a key inflation measure used by the U.S. Federal Reserve (Fed) for its monetary policy.
On Friday, the Core PCE will be released. This index excludes food and energy prices because of their volatility and therefore provides a more stable view of the underlying inflation trend.
Rising PCE spending indicates economic growth and consumer confidence. Falling PCE spending indicates caution, uncertainty, or economic slowdown.
The Fed primarily uses Core PCE as its primary inflation measure in interest rate decisions. A higher-than-expected PCE index can lead to rate hikes, while a lower value provides room to lower interest rates.
The stock market calendar week 13:
Monday, March 24, 2025:
Tuesday, March 25, 2025:
Wednesday, March 26, 2025:
Thursday, March 27, 2025:
Friday, March 28, 2025:
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are, therefore for educational purposes only.