Resilience on Narrow Foundations

Four central banks decide policy this week, with an awkward message from the data: growth is holding up, but the sources of resilience are narrowing.
In this week’s charts:→ Factories are doing more of the lifting→ Positive growth surprises are still outpacing inflation surprises→ Stronger data had been pushing bond yields higher→ Household disposable income growth weak or falling→ US consumption leaning on equity wealth→ Growth upgrades concentrated in chipmakers
One capital spending cycle, one stock market and a falling saving rate. The expansion is real, but its dependence on asset values…