Retail spending revived last month and new filings for unemployment benefits declined last week, according to this morning’s reports from the government. In both cases the changes beat expectations with surprisingly upbeat data. But there are two issues that remain worrisome. First, the year-over-year rate of growth for retail sales is still falling. Second, the annual decline in jobless claims in today’s release remains modest by recent standards. But for now, the economic news is positive in terms of the latest changes, even though there’s still plenty of room for doubt about what’s in store for the months to come.
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The recent tumble in the price of copper has sparked concerns that this cyclically sensitive commodity is signaling an increase in deflationary risk for the world economy. The initial catalyst for the change in the pricing fortunes for copper is bound up with worries about an economic slowdown in China.
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