Divided Data

Data released today were a perfect microcosm of the US economy. On one hand, job growth is excellent, with involuntary weekly terminations at lows last seen 40 years ago. Moreover, real consumer spending growth is solid at 2.7% and the manufacturing sector continues to strengthen. On the other hand, inflationary pressures are utterly non-existent and home sales continue declining very slowly due to a lack of inventory and high prices.