Bad news about the economy 👎 is having its intended effect 👍
The Fed's medicine seems to be working 💊
Economic data released in recent months has been less than great.
On Tuesday, the August S&P Global U.S. PMI (which tracks business activity) and July new home sales reports added to that trend. They came with these gloomy headlines:
US Business Activity Contracts Again, Weakest Since May 2020 - Bloomberg
U.S. manufacturing and services activity contracts in August: PMI - Yahoo Finance
New home sales fall 12.6% in July as rising prices take a toll - CNN
U.S. new home sales fall in July, the lowest level since January 2016 - MarketWatch
It’s the kind of stuff that you might expect from an economy that’s collapsing on itself.
However, while these headlines are accurate, they don’t capture the whole story.
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