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The most impactful release of the week was Friday’s Consumer Price Index (CPI) report. Both headline and core CPI came in slightly below expectations, with core CPI rising 0.2% versus 0.3% anticipated. Given the Fed’s preference for core inflation as a gauge of underlying price pressures, this softer print suggests inflation is sticky but trending lower, though still above the Fed’s target.

The ongoing government shutdown has created a data vacuum, delaying key economic reports and clouding visibility for the Federal Reserve ahead of its next meeting. Markets now face the unenviable task of interpreting policy direction with limited official data, relying instead on supplemental and tangential indicators to gauge the economy’s trajectory.

Last week’s economic data painted a mixed picture of the U.S. economy.

The week began with key sentiment data from the S&P Global Manufacturing and Services Purchasing Managers’ Indices (PMIs). Both readings came in slightly below market expectations and last month’s figures, suggesting some softening in forward-looking sentiment. However, with Manufacturing at 52.0 and Services at 53.9, both remain above the 50 threshold, signaling continued expansion in economic activity rather than contraction.

FOMC Decision and Inflation Outlook, Retail Sales and Industrial Production, Housing Market Weakness, and more.

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.

Weekly Market Commentary September 8th, 2025 Week in Review... 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. Labor Market...

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.