Despite Some Noise, Improving Trend Continues
- Inflation data were generally softer than expected in October. The import price index declined sharply and the producer price index unexpectedly declined. Although it appears businesses have little pricing power at the moment, building wage pressures should lead to a firming price environment in the future.
- Labor market turnover remains relatively soft despite the unprecedented level of job openings. This has likely weighed on wage and productivity growth during this cycle.
- Retail sales missed expectations, although the underlying components were more encouraging.
