Data suggesting the U.S. economy is too hot for comfort are getting a cool reception in some corners of Wall Street. Discounting the importance of January data extended to the one notable exception in the run of strong economic reports. Data released Thursday showed that retail sales fell 0.8% last month, a sign that resilient consumer demand might finally be abating. The Commerce Department, which produces both reports, officially considers GDP “more reliable because it’s based on timelier, more expansive data." Though not proof, recent data have suggested that current interest rates aren’t providing as much drag on the economy as Fed officials have thought, said Joe Davis, global chief economist at Vanguard.

Source: Wall Street Journal February 20, 2024 09:29 UTC