‘Flying Blind’ in the Shutdown?

With the government shutdown now stretching into its second week, key data releases have been delayed and uncertainty is rising. In this week’s episode of Basis Points, Kevin Flanagan shares how investors should interpret the lack of new economic data, and why the current backdrop differs from shutdowns of the past. Listen now for perspective on rates, risks, and what could come next. 

 

Basis point: 1/100th of 1 percent. 

ISM Services PMI: The ISM Services PMI (formerly the ISM Non-Manufacturing Index) provides a detailed look at the economy from a non-manufacturing standpoint.
Purchasing Managers’ Index (PMI): An indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employmentenvironment. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction while 50 indicates no change.