US jobless claims edged higher last week, but remain at a level that prevailed prior to the pandemic. “New claims have trended lower since last August as the 13-week moving average touched 218,000 after peaking at 235,000, a sign that the labor market remains strong,” writes an analyst at RSM.

The US Leading Economic Index fell in January, “reversing most of the gains from the previous two months,” advises an analyst at The Conference Board. Despite the latest weakness, the index’s annual growth rate “has been improving, signaling milder downside risks to growth.”

The Philly Fed Manufacturing Index weakened more than expected in February, but continued to reflect growth for the sector in the bank’s region. Firms reported a softer rise in employment for this month while future activity measures reflect optimism for growth for the next six months.

Eurozone business activity continued to post weak growth in February, according to PMI survey data. “Economic output in the eurozone is barely moving at all,” says Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

The Federal Reserve remains concerned about inflation (based on minutes from the central bank’s latest policy meeting) while a broad measure of money supply growth (M2) continues to accelerate in year-over-year terms, advises a note from TMC Research, a unit of The Milwaukee Company, a wealth manager: “The recent rebound in M2 growth suggests that an inflationary tailwind may be brewing via policy. M2 rose 1.3% in early January vs. the year-ago level. Although that’s relatively modest by historical standards, the recent directional trend change from negative to positive implies that money supply is no longer a source for slowing pricing pressure and may start to be a factor in fueling stronger pricing momentum.”