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Yelling ‘Stagflation!’ In A Crowded Theater
Don't celebrate just yet.
Investors were all set to bid up equities following a "Goldilocks" US jobs report when a key gauge of services sector activity virtually screamed "Stagflation!" in a crowded theater.
Just 48 hours after a contraction-territory ISM manufacturing headline conspired with a hot read on an underlying measure of factory prices to send a dire warning about the macro conjuncture, ISM services did the same.
The services headline missed estimates badly, but more important than
nuance is much harder to code … unless generative AI’s new clothes render it easy
When ISM costs follow gas prices back down next month the stagflation narrative can chill
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