"The S&P 500 continues to maintain a positive tone as recently released U.S. economic data indicate that the economy is cooling in a controlled manner rather than weakening abruptly. This development keeps markets leaning toward a soft-landing scenario, thereby supporting investor sentiment, even as a degree of caution persists given that several risks have yet to fully dissipate. Growth indicators reflect a slowdown in the economy, though not uniformly."
"The manufacturing sector remains under pressure, with regional surveys such as the Empire State and Philly Fed indices returning to negative territory, highlighting weak demand and elevated costs as ongoing headwinds for businesses. Preliminary PMI readings also edged lower from the prior month, suggesting that growth momentum is slowing, though not yet slipping into a severe contraction. This reinforces the view that the U.S. economy is undergoing an adjustment phase rather than entering a deep recessionary cycle."
"In the labour market, job creation remains modest, while the unemployment rate has risen to 4.6%, the highest level in nearly four years. Meanwhile, monthly wage growth slowed to 0.1%, signalling a clear easing in wage pressures. These signals suggest that the labour market is cooling, helping to reduce the risk of a renewed rise in inflation. CPI y/y, released last week, declined to 2.7% from 3.0% previously, indicating that the disinflation trend is continuing at a gradual yet relatively sustainable pace."
The S&P 500 remains positive as U.S. economic data indicate the economy is cooling in a controlled manner rather than weakening abruptly. Growth indicators show a general slowdown, with manufacturing under pressure as Empire State and Philly Fed indices return to negative territory, reflecting weak demand and elevated costs. Preliminary PMIs edged lower, suggesting slowing growth momentum without severe contraction. Job creation is modest and unemployment rose to 4.6%, while monthly wage growth slowed to 0.1%, indicating easing labor-market pressures. CPI year-over-year fell to 2.7%, continuing gradual disinflation. These developments give the Federal Reserve room to consider cautious, conditional rate cuts instead of prolonged restrictiveness.
Read at London Business News | Londonlovesbusiness.com
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