09/04/2026
Economic data released this week continued to show that the U.S. economy remains resilient despite higher costs and ongoing geopolitical uncertainty. The service sector, which represents the largest part of the economy, strengthened considerably in August, with business activity and new orders posting some of their strongest readings in several years. Manufacturing also remained in expansion territory for the eighth consecutive month. Consumer and business demand remain solid, although higher energy prices and other input costs continue to create inflation concerns. Stocks were volatile during the holiday-shortened week and finished lower Friday as investors weighed stronger economic data against the possibility that the Federal Reserve may need to keep monetary policy tighter for longer. Overall, the economy continues to perform better than many had expected, with solid economic activity providing a favorable backdrop as we head into the fall, although inflation remains the biggest uncertainty.
Economic data released this week continued to show that the U.S. economy remains resilient despite higher costs and ongoing geopolitical uncertainty. The service sector, which represents the largest part of the economy, strengthened considerably in August, with business activity and new orders posti...