The Bottom Line: Reports of the Death of the US Economy Have Been Greatly Exaggerated
Although data over the past few weeks has shown a loss of economic momentum, a recession is not expected in the near term. Aside from the slowdown in spending, there has been a bifurcation taking place in the data. The survey data (often called “soft data” – such as consumer sentiment) suggests the economy is on the brink of a recession. But the actual activity data (“hard data” like the labor report) continues to show strength in the economy.