Divergent Data

Last Thursday (9/15/22) perfectly encapsulated our economy. Retail sales were up 0.3% M-o-M, but the prior month was revised down to -0.4% from 0%. Industrial production declined, led by a 2.3% fall in utilities output, as higher electric bills reduced demand and manufacturing activity declined in the Northeast. However, first time unemployment claims fell for the 5th straight week, reminding us that the labor market remains strong, and supply-chains continue improving.