This week’s economic data painted a mixed picture of the U.S. economy, with housing and consumer confidence showing signs of resilience, while spending and manufacturing data were more subdued. Inflation remained elevated, keeping monetary policy at the center of investor attention.
Last week’s economic data generally pointed to a resilient economy entering the fourth quarter. Business activity and labor market conditions remained supportive of growth, although housing activity remained weak and persistent price pressures continued to be a concern.
Inflation came in below expectations and Q2 U.S. gross domestic product (GDP) growth exceeded forecasts, while labor data pointed to slower hiring. Together, the releases showed continued economic expansion alongside moderating labor demand and inflation above the Federal Reserve’s target.
Economic data last week continued to show a resilient U.S. economy, although the primary focus was the Federal Reserve’s September policy meeting and the inflation outlook. Treasury yields remained elevated throughout the week, with the 10-year Treasury finishing near 5.0% and the 30-year ending around 5.34%, as investors digested the Federal Reserve’s 25-basis-point rate increase and updated economic projections.
The economic data last week continued to show a U.S. economy that remains resilient, but with inflation pressures moving back into focus ahead of the September Federal Open Market Committee (FOMC) meeting. Treasury yields moved sharply higher over the week, with the 10-year finishing around 4.97%, up from roughly 4.78% the prior Friday, while the 30-year ended near 5.38%, reaching its highest level in nearly two decades.