PMI "Contractionary Territory" & "Little Changed" Consumer Sentiment Follow Cool CPI

Economic Data Summary - S&P Global PMIs indicate manufacturing PMI at 52.2%, exceeding expectations of 51.9%, signaling expansion [1][2] - Services PMI also surpassed expectations at 55.2%, compared to the anticipated 53.5%, showing month-over-month improvement [2] Manufacturing Sector Insights - Production volumes in manufacturing increased for the fifth consecutive month, marking the largest expansion since August [2] - Domestic orders are driving growth, while export orders have significantly declined, the steepest drop since February, attributed to tariff policies and weaker demand from China and Europe [3] Services Sector Insights - The services sector is experiencing a deceleration in input and output prices, but faces challenges in employment due to a lack of qualified candidates [4] Consumer Sentiment Analysis - University of Michigan consumer sentiment survey shows little change, with consumer expectations at 50.3%, sentiment at 53.6%, and current conditions at 58.6% [6][7] - One-year inflation expectations remain stable at 4.6%, indicating no significant shifts in consumer outlook [8] Inflation and Market Reaction - CPI year-over-year is reported at 3%, aligning with expectations, while core CPI also matches at 3% [14][15] - Month-over-month CPI figures came in slightly lower than anticipated, contributing to a positive market reaction [13][16] Market Performance and Technical Analysis - S&P 500 reached a key resistance level at 6,800, with potential for further gains if it breaks through this level [18][19] - Leading sectors include communication services, technology, and financials, which are performing well in the current market environment [20]