The Economy Shows Strength—But Cracks Remain
Freshly revised data shows the U.S. economy grew faster than expected from April through June, with consumer spending leading the way. According to updated government figures, household spending gave the economy more lift than earlier estimates had suggested.
American shoppers have continued to hold up the world’s largest economy despite tariffs, inflation concerns, and talk of a slowdown. In fact, new unemployment claims recently dropped to their lowest level since July, hinting that the labor market may be steadier than some reports imply.
Still, the optimism isn’t universal. Consumer confidence has slipped again, according to the University of Michigan’s monthly sentiment survey. So far this year, sentiment has dropped more than 20 percent as households grow more cautious about job security, income growth, and stubbornly high prices. Nearly half of respondents said inflation is actively eroding their finances, the highest level of concern in a year.
Inflation itself remains sticky. In August, the personal consumption expenditures (PCE) price index rose 2.7 percent from a year earlier, or 2.9 percent when food and energy costs were stripped out. Both measures remain above the Federal Reserve’s 2 percent target.
On Wall Street, stocks rallied to close out last week but still finished lower overall, while Treasury yields pushed higher across most maturities.
S&P 500, Dow Jones Global ex-US, Gold, and Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested in directly. N/A means not applicable. |
Are the Ig Nobel Prizes Just a Joke?
While the Nobel Prize honors world-changing discoveries, the Ig Nobel Prizes celebrate something a little less traditional: scientific studies that spark laughter before sparking curiosity. The annual event highlights research that may sound odd at first glance but often carries a clever insight or unexpected lesson. Now in its 35th year, the quirky awards highlight unusual studies that carry surprising insights.
This year’s winners proved that science doesn’t always have to be serious. One team earned the Peace Prize after showing that a couple of drinks can help people pronounce a new language more clearly, though it does nothing for their ability to judge their own fluency. The Biology Prize went to researchers who discovered that painting cows with zebra stripes dramatically reduced fly bites, saving the cattle industry billions. In Engineering Design, two innovators studied the frustrations caused by smelly shoes and proposed a shoe rack with a built-in deodorizer. And in Physics, a group of European scientists took on the deceptively tricky Italian dish Cacio e pepe, developing a scientific recipe for those without the instincts of a Roman grandmother.
Other prizes were handed out in literature, psychology, nutrition, pediatrics, chemistry, and aviation—reminding us that sometimes the quirkiest questions lead to the most memorable answers.
Weekly Focus – Think About It
“The economy is a very sensitive organism—it’s built on confidence, and confidence is built on trust.”
—Paul Volcker, former Federal Reserve Chairman