US: All eyes on regional business surveys - Rabobank
Analysts at Rabobank point out that today sees the start of the November cycle of regional US business surveys with the Empire Manufacturing index and the Philly Fed.
Key Quotes
“The first takes a look at New York state, while the second represents the Fed’s 3rd district, which comprises parts of Pennsylvania and New Jersey and all of Delaware. While one of the smallest Fed districts, the 3rd district’s manufacturing sector is seen as representative for the US manufacturing sector as a whole. Therefore it is a much watched business cycle indicator, although it tends to be more volatile than the nationwide ISM manufacturing index.”
“Overall, US business surveys have been and are expected to remain strong. The large corporate tax cut and deregulation have given the economy a boost, although the impact of the tax cut is likely to fade. In fact, business investment already slowed down in Q3.”