Consumer Remains on Solid Footing
- There were two key takeaways from economic data released this week. First, current economic conditions are positive for the U.S. consumer, who remain confident about the labor market providing opportunity for continued income growth, and are comfortable making economic decisions accordingly.
- Second, disappointment may be setting in for those expecting a strong rebound in the factory sector. Tax cuts and other public policy expectations have not come to fruition as soon as some had hoped following the electi on. Data show a recovery, but it is slow and gradual. Orders and shipments data have yet to signal a major pickup for the factory sector is imminent.
Confidence Abounds in the Eurozone
- Confidence indicators are surging across the Eurozone. Although indices of business and consumer confidence appear to be overstating the underlying pace of growth at present, the economic expansion that is underway in the euro area appears to be increasingly self-sustaining.
Japanese Economy Continues to Grind Along
- The modest pace of expansion that has been underway in Japan appears to have continued in Q2. Until inflation moves higher, however, the Bank of Japan (BOJ) likely will keep its foot firmly on the accelerator of monetary accommodation.