Meanwhile, a head of the jobs report, we have the second clue about it after the release of the ADP report tomorrow, the ISM manufacturing index will tell us about the manufacturing situation in the states for the first month of the second quarter, and will tell us about the addition from the manufacturing sector to the labor market.
The ISM manufacturing index most likely fell in April to 48 from a contraction to a deeper contraction, as confidence and spending are falling, sales and manufactur-ing and even employment should fall eventually. We know that any reading below 50 is a sign of contraction in the economy.
Personal income and personal spending numbers are due today as well, where income is expected to grow on a slower pace by 0.4%, while spending grew 0.2% in the moth of March, while the core yearly PCE, the feds favorite inflation gauge is expected to hold at 2.00%.
The U.S. economy grew in the first quarter 0.6% according to the advanced read-ing of the gross domestic product that was released yesterday, and as we saw, the growth came based on rising inventories which might hold the manufacturing sector for a while, but unless sales improve the situation will not get any better, on the opposite stocking up inventories may lead us to a new depression in the economy.
The eyes and ears will be focused on tomorrows report, with some attention for todayâ€™s data, and taking some hints from there, yet the judge will be tomorrow, and pricing the next FOMC move will be tomorrow, so get prepared for it, and letâ€™s see how it goes.