The latest inflation, job data is concerned by Wall Street about the 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 started with strain signs in the labor market: the employment rate He decreased to the lowest level seven monthsAnd the rate of takeoff, the main scale of the worker’s confidence has decreased, to only 2 %.

On Wednesday, GDP data showed the economy Revive at an annual rate of 3 % in the second quarterThe recovery from a sudden shrinkage 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.

then, After the Federal Reserve kept the price of interest ratesThursday’s launch of the preferred inflation scale, Personal Consumption Expenses Index (PCE)It showed an increase in prices in June Economic inflation It remains over the goal of the Federal Reserve 2 %. 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 a disappointing report in July, which was shown The clearest sign so far is that the labor market may crack. The United States added only 73,000 jobs, Much short From 104,000 forecasts. 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.” 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.”