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U.S. Firing on All Cylinders—Inflation Too
The economy has largely shaken off the doom and gloom of rapidly rising gasoline prices, at least for now. The steady stream of better-than-expected economic reports continued in earnest this week, topped off by solid core retail sales growth of 0.5% for April and a sizeable pick-up in manufacturing growth of 0.6%. Capturing that resilience in one measure is the Bloomberg Economic Surprise Index that firmed to a positive 41 this week, as economic forecasters have largely underestimated the extent of the growth momentum in recent weeks (Chart 1). Economic indicators haven’t beaten forecasts this consistently since ... (full story)