Citi Issues An Alert On Its Most Popular Index
Citi’s US Economic Surprise Index went negative late last week, but after this morning’s data, it has collapsed to the lowest level since Oct 2016.
This is the biggest crash in US Macro data in 6 years…
And Citi is worried:
“After a weak Q1, downside misses in economic data this week have a heightened capability to trigger a reassessment of the whole growth trajectory.”
This week’s main focus will now be the US employment report on Friday, with all eyes firmly on average hourly earnings, with investors looking for it to confirm or deny the upward pressure seen in last Friday’s ECI report. From there, we’ll look for Chair Yellen’s assessment on the economy Friday afternoon at 1330ET (which should be entertaining given the carnage above).
Who could have seen this coming? ‘Soft’ Data has tumbled to 3-month lows…