MHI Solutions

Economic Market Update

Expectations for the U.S. and Global Economy Improve for 2017

Optimism about the U.S. economic outlook that increased at the end of 2016, strengthened even further in the first quarter of 2017. U.S. consumer confidence rose sharply in the first quarter and data from the ISM Manufacturing and Non-Manufacturing purchasing manager indices (PMIs) and the MHI Business Activity Index (BAI) was positive. Although there had been downside risks to U.S. GDP growth in the first quarter from a strong dollar and slowing automotive sales, second and third quarter growth have been exposed to the downside from potential U.S. policy disappointment.

While U.S. economic data and fiscal policy have offered surprises in recent months, global growth still is on track to expand. Throughout the first quarter of 2017, the Chinese Caixin manufacturing PMI conveyed growth, supporting a trend of expansion and acceleration in growth, since the Chinese manufacturing recession ended in June 2016. The trend improvements of Chinese growth provided support for industrial metals and oil prices through the second half of 2016 and the first quarter of 2017. Meanwhile, the Eurozone manufacturing PMI and the German Ifo conveyed expansion and acceleration in the first quarter of 2017. These improved European data presented fundamental upside economic risks to the euro at the beginning of the second quarter of 2017.

By Jason Schenker

Read more…


Leading manufacturing and supply chain executives agree that technology is the key to future success. As they digitize their supply chains they are generating more data than ever before, giving them the power to leverage that data to see their businesses in new ways and to make better decisions. These early adopters are creating real and measurable competitive advantage. When it comes to technology investment start small but think big. Build on your successes and learn from your failures. By investing wisely, you’ll create additional value in your supply chain and widen your advantage over the competition.

Industry Headlines

MHI just released the list of finalists for the 2019 MHI Innovation Award. After receiving 108 submi [...]

MHI Blog-ProMat is about helping you find the wow that helps push your company forward. Sometimes th [...]

MHISolutionsmag.com-The people who work at MHI are the gears that keep the association rolling. They [...]

Visit NewsWire to see more industry headlines

Latest Tweets