Economic Data and Confidence Levels Offer Mixed Signals
In recent months, we have seen increased softness in so-called “hard” economic data, including retail sales, automotive production and employment. At the same time, “soft” data such as business confidence measures point to an expectation of economic acceleration. In our experience, these disconnects typically result in a move in the soft data, suggesting confidence measures could be due for a setback. Should this happen, it could provide a headwind for equity prices.
Key Points:
- Economic data has trailed off in recent weeks, but we see reasons to expect a renewed acceleration.
- In the near-term, confidence levels could diminish, providing a headwind for stocks.
- Nevertheless, we believe it makes sense to maintain a pro-growth investment stance.
Economic/Market Outlook Nuveen Asset Management Money Manager Commentary