Very good, looks like continuing muddling through with moderate growth unemployment drifting lower in a few months when there are no more hours to add to the existing labor force.
Welcome to Japan, Mr. US bond market?
Ok market for stocks, especially with Euro zone risk fading. Just China h2 risk left, seems.
PCE data today was encouraging and showed the positive impact of hours on labor income.
Personal income up 0.4% with wage and salary income up 0.5%.
Personal spending up 0.3% and headline deflator unchanged, so strong advance in real consumption spending.
For all the slowdown fears, real private sector demand will be stronger in Q2 than Q1.
Core deflator up .162%, largest advance in 7mths. Recent divergence from core CPI (PCE data has been firmer) reflective of lower weight of housing in PCE data.
Not saying inflation is picking up, just that deflation fears seem overblown.