Following the election results, the University of Michigan’s Consumer Sentiment Report painted a less-than-stellar picture, reflecting stagnation in sentiment. The prior week was relatively light, aside from the Consumer Sentiment data. However, the S&P PMI Industrial Numbers provided a brighter outlook, indicating some acceleration in manufacturing activity as the holiday season approaches. Looking ahead, the coming week is expected to deliver more significant data on inflation, including the Federal Reserve’s preferred inflation indicator, the PCI Index.

With the release of the latest CPI and PPI data, inflation has increased month-to-month for the first time since March, marking the first rise in over seven months. The Federal Reserve has reiterated its goal of reducing inflation to a 2% target within a year. While this development doesn’t necessarily indicate an imminent interest rate hike, it suggests that current rates may remain unchanged for an extended period. Earlier optimism about a potential rate cut by the end of the year has significantly diminished in light of recent inflation figures and economic data. However, Retail Sales data presents a more positive outlook, showing continued economic growth ahead of the holiday shopping season.