Gavekal Capital: More Muddle Through Data For The US

Friday, November 15, 2013

More Muddle Through Data For The US

Two important indicators for US manufacturing were released this morning and both pointed to a continuation of the "muddle through" pace of growth in the US. Empire Manufacturing index was below expectations at -2.2 (vs expectations of 5.5). The employment component also showed a slowdown in November.

Meanwhile Industrial Production declined by -0.1% month-over-month in October. The headline number wasn't as bad as it looked as it was driven down by utilities output and mining activity. The manufacturing output actually increased by 0.3% month-over-month. However, momentum in production is currently neutral.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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