Manufacturing PMI cooled more than expected—54.6 vs 55.2 consensus. New orders slowing (53.7 from 56.7). Employment weakening (51.2 from 52.8). But prices paid? Still stuck at 71.1.
So we're seeing demand soften and hiring hesitate, yet input costs aren't budging. That's the squeeze—slower growth meeting stubborn inflation. Not a crisis, but not comfortable either.
This is the kind of data that keeps the Fed cautious. Growth losing momentum while price pressures linger is exactly the environment where policy mistakes get made. Watch how this plays out in the next few months.
So we're seeing demand soften and hiring hesitate, yet input costs aren't budging. That's the squeeze—slower growth meeting stubborn inflation. Not a crisis, but not comfortable either.
This is the kind of data that keeps the Fed cautious. Growth losing momentum while price pressures linger is exactly the environment where policy mistakes get made. Watch how this plays out in the next few months.
