Inflation moderates in manufacturing and job market

Here’s a thought experiment: Try to imagine Jay Powell and the rest of the Federal Reserve jumping for joy because of reports that inflation is coming down. 

Let’s start with the Institute for Supply Management’s update on U.S. manufacturing for July, which included this line: “The Prices Index remained in ‘decreasing’ territory, at a level generally not seen since early in the coronavirus pandemic.” When, by the way, you had to look really hard to find any inflation in this economy. 

Also, we got a report from payroll processor Paychex showing that wage inflation is on the decline, in line with what economists expect in July’s national jobs report, coming Friday. 

I like it when an economist gives me an “economic zeitgeist” quote right at the top.

“The economy continues to expand, but inflation pressures are easing.” Thanks for doing the heavy lifting, Bill Adams, chief economist at Comerica Bank. 

Adams said the latest ISM repo …

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