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Keeping calm. Carrying on.

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Campaigning in the UK general election will resume on Monday, having been suspended after the terrorist attack on Saturday. The general election will of course take place on Thursday as scheduled. In a wider sense, the UK reaction (using an over-used slogan almost eighty years old) is to keep calm and carry on.
  • The data calendar focuses on service sector sentiment opinion poll data. These figures continue to overstate economic reality, although some measures have recently started to correct back to more realistic levels.
  • US sentiment data may be watched for evidence on the labor market in the wake of the employment report last Friday. The US labor market appears to be showing signs of supply constraints, limiting job creation.
  • US final productivity and unit labor cost data will probably be overlooked by the markets. Trends in these data items do matter to economists, however. The trend in productivity dictates trend economic growth (which matters to President Trump's fiscal ambitions). Unit labor cost data is important to inflation trends.