Reports give gloomy view of economy

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Despite a rally in stocks this morning, several reports gave a negative view of the economy.

The Institute for Supply Management-Chicago Inc.’s measurement of U.S. business activity decreased for the sixth consecutive month to 31.4 in March from 34.2 the prior month, Bloomberg reported. This indicates that manufacturing is weakening, with a reading below 50 signaling a contraction.

The Conference Board’s Consumer Confidence Index rose to 26 from a revised historic low of 25.3 in February. The nearly unchanged reading shows that Americans are still nervous about the future. The reading declined significantly in February after a 37.4 reading in January.

Meanwhile, the S&P/Case-Shiller index showed that home prices in 20 U.S. cities fell 19 percent in January from the year-earlier period, the fastest decline on record, following an 18.6 percent decrease in December, Bloomberg reported. Home prices fell 2.8 percent in January from the previous month.