CCA tracks the following 14 economic datapoints, which are some of the common indicators used to monitor the status of the macro economy. A few key takeaways that CCA is monitoring are:
- Fed officials continue to hold rates steady as inflation is still higher than their 2% target. The Fed has maintained that they are still focused on their dual mandate: achieving price stability (2% inflation) and maximum employment. The PCE Price Index was up 2.7% in the trailing twelve months period ending March 2024. Not only is inflation higher than target levels, but also the last few months of readings have consistently been higher than expectations.
- Consumer Price Index and Producer Price Index increased 3.5% and 2.1%, respectively, on an unadjusted basis for the trailing twelve months period ending March 2024.
- The economy is witnessing resilience from consumers. The University of Michigan’s Preliminary Index of Consumer Sentiment value was 77.2 in April and has remained consistently above 76.0 in 2024. Retail Sales dipped in January, but increased in February and March, especially in “out of home dining,” evidence that consumer confidence is trending upward.
- Given this resilience, economists began to speculate about the potential for a rate hike. Jerome Powell, the Chairman of the Fed, made it clear that he does not see a need for rate hikes during their May meeting.
About Chesapeake Corporate Advisors
Chesapeake Corporate Advisors is a boutique investment banking and corporate advisory firm providing strategic advisory services (value creation) and investment banking services (value realization) to companies with revenues between $10 million and $200 million. For more information, visit www.ccabalt.com or call 410.537.5988.
