This week’s economic indicators reveal a complex portrait of global economic trends, as data highlights both advancements and emerging challenges. Economic growth in the United States has decelerated to 1.6%, the lowest in two years, despite the IMF’s recent revision of the US GDP growth forecast upwards to 2.7% for 2024. Europe’s picture is more mixed, with some sectors showing recovery while manufacturing remains hampered by cost pressures. The Eurozone’s GDP experienced modest growth of 0.3% in the first quarter, marking the strongest quarterly growth since Q3 of 2022. But are these signs that the worst is behind us?
1. Monday Macro View: May be a Soft Landing – PREMIUM
April’s flash Purchasing Managers’ Index (PMI) data signals a more uniform economic expansion across the major developed economies, notably with improved growth rates in Europe and Japan. This is contrasted sharply by a slowdown in the United States, where the PMI output index slightly dipped from 51.7 in March to 51.6. The resilience in Japan is underscored by escalating service sector inflation, partly due to a weakening yen. Find out more in this week’s Monday Macro View.
2. Get the Scoop: C6’s Mark Rossano Partner Update! – FREE
Hey everyone, Mark, our top-notch analyst and the brain behind C6 Capital, has just rolled out a fresh update for his investors that is highly relevant. “C6 Infrastructure Partners Follow-Up: April 2024” unpacks a surprising twist in our energy story—the hunger for electricity is spiking way faster than anyone saw coming, thanks to the AI boom and the explosion of data centers. It’s all in there: insights into how power companies are scrambling to keep up, and what this means for the juice running our world.
3. Patterson-UTI Energy: Q1 TAKE THREE – PREMIUM
Patterson-UTI Energy’s (PTEN) management sees two trends converging in Q2. While it will face challenges from natural gas price’s weakness and energy operators’ consolidation, by Q3, it expects the US drilling and completion businesses to start improving. PTEN’s cash flow from operations increased by 56% in Q1 2024 compared to a year ago. Find out more in this brilliant brief by Avik Chowdhury!
4. Market Sentiment Tracker: Signs of Growth but Still not there – PREMIUM
The Market Sentiment Tracker provides a nuanced view of the global economy as of May 2024. Globally, inflation rates are showing a gradual decline. From a high of 6.8% in 2023, inflation is expected to moderate to 5.9% in 2024 and further to 4.5% by 2025. Inflation remains a controlled factor within the Eurozone, stable at 2.4% in April, which suggests that the European Central Bank’s (ECB) policy to hold interest rates steady is currently effective in managing price stability without stifling growth.
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