Overall, the data reinforces a resilient growth environment with pockets of moderation, where strong manufacturing and firm labor conditions offset softer (but still expanding) services activity. Combined with tighter energy markets and a cautious Fed, this keeps inflation risks tilted to the upside, likely sustaining elevated rate expectations, upward pressure on yields, and a selective equity backdrop.
Last week was centered on inflation and consumer demand, with housing and labor data helping round out the broader economic picture.
Last week was a busy one for economic data, with key reports across labor, housing, and both business and consumer sentiment, adding important context and nuance to an increasingly complex economic backdrop.
Economic data released during the week pointed to continued economic expansion, supported by resilient consumer demand and steady business activity, alongside mixed signals on inflation and labor market conditions.
This week’s macro releases pointed to a still-resilient economy with pockets of persistent inflation, particularly at the producer level, alongside continued softness in housing activity.