NAM: Yields Ease, Providing Some Relief For Borrowers
Board Converting NEWS INTERNET DIRECTORY
After soaring to nearly 5 percent on Oct. 19, the highest since July 23, 2007, 10-year Treasury yields have pulled back significantly in the weeks since then. Last week, yields dropped to 4.25 percent on Nov. 29 before rising somewhat. The easing of interest rates has buoyed equity values, and to the extent that it helps provide some relief for bor- rowers, it also offers some hope for increased demand for rate-sensitive manufacturing sectors and the housing mar- ket. In addition, the U.S. dollar has fallen by 3.0 percent on a trade-weighted basis since Oct. 26, which should be welcome news for exporters. To be fair, the drop in yields has been tied to increased expectations that the Federal Reserve will start cutting rates in early 2024, which, in my view, seems unlikely. I would not expect the Federal Open Market Committee to reduce rates until mid to late 2024 at the soonest. On the positive side, the FOMC is expected to keep rates un- changed at its Dec. 12–13 meeting. It would be the third straight meeting with no change. Inflationary pressures continue to moderate, albeit at rates that remain “stickier” than desired. The personal consumption expenditures deflator was unchanged in Oc- tober, with 3.0 percent growth over the past 12 months, the lowest since March 2021. Excluding food and energy, core PCE inflation was 3.5 percent year-over-year in Octo- ber, the weakest pace since April 2021. Real GDP soared 5.2 percent at the annual rate in Q3 2023, the best quarterly gain since Q4 2021. As such, the U.S. economy continued to show signs of strength and re- silience despite ongoing challenges and worries about the outlook. Yet, demand is expected to slow moving forward. The U.S. economy is expected to grow 2.5 percent and 2.0 perent in 2023 and 2024, respectively, with 2.4 percent growth in Q4. The probability of a “soft landing” has increased in re- cent weeks, but there continue to be sizable downside risks in the economic outlook. Indeed, personal spending rose 0.2 percent in October, slowing from the solid 0.7 per- cent gain in September. Spending on durable goods dropped 0.5 percent in October, weighed down by weaknesses in autos and household furnishings. Nonetheless, consumer spending has provided continued resilience to the U.S. economy, with personal spending rising 5.3 percent year-over-year. Manufacturers continued to remain challenged, with activity contracting for the 13th straight month. The ISM Manufacturing Purchasing Managers’ Index was unchanged at 46.7 in November, and the underlying data were mixed. Sample comments made note of weaker economic conditions. High interest rates were also men- tioned.
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Sauer provides intelligent solutions for scoring, slitting, slit-scoring, and perforating on corrugators and floor slitters; and glue tab cutting, creasing, slotting, trimming and scrap chopping on presses. New, featured offerings include FRX Adjustable Folding Rail System and G3 Scoring System: the latest proven creasing technology on the market.
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Interactive website for Stafford Corrugated Products and Stafford Cutting Dies. Featuring online ordering of replace- ment parts. Also, visitors can automatically calculate sheet size for most die-cut standards.
SUN AUTOMATION GROUP ® www.sunautomation.com
SUN Automation Group is the global leader in providing innovative solutions to the corrugated industry. SUN engi- neers and builds the SUN625 Rotary Die Cutter, provides sales, service and support in North and Central America for Latitude Machinery Corporation, manufacturer of Mini to Jumbo FFG and RDCs. Additionally, SUN is the North Amer- ican, UK and Ireland sales and service provider for Para Machinery’s line of equipment, and is the North American sales provider for Highcon. SUN also powers the corrugat- ed industry’s premier IIoT platform, Helios, and is the OEM source for Langston/Staley equipment parts and service. THACKER INDUSTRIAL SERVICE COMPANY www.thackerindustrial.com Specializing in corrugated machinery, T.I.S.CO. offers quali- ty-made products, support services, and more. T.I.S.CO. has a reputation of dependability, not only in the product, but in service and support. With more than 25 years’ experience, T.I.S.CO. installs equipment and machinery, moves or sets up entire plants, rewires and rebuilds - all over the world. VT GROUP www.vtgrouponline.com VT offers prepress services for the POP display and corru- gated shipping container industry including graphic design, optimized digitally imaged printing plates and innovative pre-mounting solutions. Our large-format digital printing fa- cility (Digital Impact) is a leading short-run manufacturer of distinctive POP displays and signage where litho-like graph-
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WPR Services was established in 2016. What originally start- ed as a technical services company expanded its product offerings to include a machine center learning platform POWtalk™. Our analysis of video, audio, machine metrics, employee ergometrics, and person to person conversation provides a way to identify safety and process inefficiencies.
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December 11, 2023
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