Overall, the data suggests the economy is entering a more balanced phase. Inflation appears to be stabilizing, with price pressures no longer accelerating, while signs of labor market softening are beginning to emerge.
Last week was pivotal for labor market data, with several key reports shaping investor sentiment. Markets also digested fresh survey data as participants assessed the economic outlook.
Last week began with a focus on the housing market, where housing starts for July exceeded expectations, reaching 1.428 million new construction starts.
Last week began with a focus on the housing market, where housing starts for July exceeded expectations, reaching 1.428 million new construction starts.
Economic indicators released this week reflect a complex and evolving macroeconomic landscape, marked by persistent inflationary pressures and a labor market that remains resilient but shows early signs of moderation.
Overall, the data portrays an economy that is still growing but at a slower pace. The services sector is barely expanding, the labor market is stable but showing signs of cooling, and inflation remains moderate yet above the Federal Reserve’s long-term target.