Latest inflation, jobs data sparks Wall Street concern over US economy

The shares continued to obtain record levels this year, as investors are betting on a flexible economy and the minimum repercussions of inflation moved by customs tariffs. But last week, both assumptions were pressure.

It was a week crowded with economic data, as he gave a more accurate look, and in some cases, a realistic look at the state of the American economy. The week began with the strain signs in the labor market: the employment rate decreased to the lowest level in seven months, the boot rate, which is a main measure of workers’ confidence, decreased to only 2 %.

On Wednesday, gross domestic product data showed that the economy had recovered at an annual rate of 3 % in the second quarter, and recovered from a sudden deflation Q1 driven by pre -parties in imports. But economists have warned that the main growth is masked for the lunar inherent. Sales have increased for private local buyers, a major agent to demand consumers and business, by only 1.2 %, the weakest since 2022.

Greg Daco, the Eye-Parthenon’s chief economist, described the recovery as a “economic mirage”, adding that uncertainty in politics, high inflation pressure from definitions, and the most strict immigration restrictions began to weigh more clearly on economic activity.

After that, after the Federal Reserve kept the interest rates steadfastly, the Thursday version of the preferred inflation scale showed the PEC’s Expenses (PCE), an increase in prices in June as inflation remained 2 % higher than the Federal Reserve Bank. Consumer spending also showed signs of stress, as real personal spending increased by only 0.1 % in June, after a 0.2 % decreased in May.

The week was crowned with the disappointing Jobs Jobs report, which has been shown to the most clear sign that the labor market may be cracked. The United States has added only 73,000 jobs, which is much less than 104,000 jobs. The most surprising was sharp reviews down in May and June, which erase 258,000 combined jobs, which is the largest two -month classification since May 2020.

In its entirety, the data last week drew a picture of the growing economic pressure, with increasing signs that families began to feel pressure with the start of the second half of the year.

“The customs tariff began to sting,” said Daco in Eho. “They lead to high pressure of inflation, which reduces spending on consumers and the flow of companies to adopt more waiting and vision approach.”

“The signs are that consumer spending loses momentum,” said Michael Pears, Vice president of US Economists in Oxford Economic. He added that “with the decrease in real income growth, we expect an increase in spending on the consumer, especially on the estimated purchases and commodities that are more exposed to the increase in prices that depend on customs tariffs.”