The economy has been showing recent signs of cooling

The U.S. has moved away from extremely loose monetary policy, near 0% interest rates, and various forms of government stimulus. As Covid-era restrictions ended, pent-up demand sparked a period of unusually strong spending and growth that was accelerated by these easy conditions. While economic activity remains fairly robust, many metrics show weakening conditions.

Examining these metrics over only a short-term basis (the past year, for example) may give the dramatic appearance of a sharply deteriorating environment. It is important to step back and take a longer-term view to ensure proper context. Many of these metrics are in fact weakening, but have so far moved from unusually strong levels back to pre-pandemic conditions. This Market Note outlines certain metrics that suggest a slowing trend in the economy.

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The Verus Market Note provides market commentary along with relevant charts and graphs. Each week, we highlight a key story from the finance world that we believe will pique your interest. While these insights are meant to inform and enrich your understanding of the current market landscape, they should not be taken as direct recommendations for immediate portfolio adjustments.