The latest round of data releases provided a more nuanced picture of the economy, highlighting a continued tension between moderating growth, persistent inflation pressures, and pockets of strength across key sectors.
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.