Pantheon Publications

30 July 2025 US Monitor The labor market is limping on; trade deals won't reinvigorate it

• Job openings are trending down and people say new jobs are harder to find; expect subpar July payrolls.
• The fall in demand for more labor has been led by non-retail services; tariff certainty won't help much.
• Q2 GDP likely rose at a 3% pace—cue White House bragging—but the trend is likely just half that rate.

29 July 2025 US Monitor The consensus for a three-digit July payroll print looks complacent 

• We look for a 75K rise in July payrolls; key surveys are weak and federal job cuts likely increased.
• A rebound in the unemployment rate looks likely, given the sustained rise in continuing claims.
• The 15% tariff on EU imports includes most previously exempt goods, so the overall AETR has risen to 17%.

22 July 2025 US Monitor State-level payrolls cast further doubt on a migrant exodus

• BLS data suggesting the foreign-born workforce is already rapidly shrinking look implausible.
• Sector-level payrolls in California and Texas suggest most undocumented workers remain in their jobs.
• A bird’s eye view of employment growth in the other 48 states and DC tells a similar story.

18 July 2025 US Monitor Clearer signs of tariff-induced weakness in June retail sales volumes

• The modest gains in nominal retail sales in June were boosted by price rises; sales volumes were stagnant.
• Real consumption likely rose by just 1½% in Q2 and is on track for even slower growth in Q3.   
• The cost of new tariffs has so far been borne entirely by US importers, rather than foreign exporters. 

17 July 2025 US Monitor PPI data show tariffs are inflationary, but only for goods

• PPI and CPI data collectively point to a 0.28% increase in the June core PCE deflator; tariffs mostly to blame.
• The core PPI was unchanged partly due to a plunge in prices charged for accommodation, which are volatile.
• Announcing a shadow fed Chair is a bigger risk than removing Mr. Powell immediately from his post.

16 July 2025 US Monitor Tariff-related price hikes hit in June, with worse to come in July

The June rise in core goods prices, ex-autos, was the biggest in three years; import-sensitive prices leapt...

...But only a quarter of the tariff costs has come through so far; expect even bigger price rises in July.

CPI services inflation will continue to cool, but it will offset only about half the pick-up in goods inflation.  

15 July 2025 US Monitor Retail slowdown likely continued in June, as headline sales flat-lined

• We think headline retail sales were little changed in June, after falling in April and May.
• A small price-driven increase in control sales was likely mostly offset by another fall in auto sales.
• Homebase are roughly consistent with 150K for July private payrolls, but we prefer to trust other indicators.

10 July 2025 US Monitor The tariff boost to consumer prices will be undeniable in June's data

• Adobe's Digital Price Index suggests some goods prices rose in June at the fastest pace since 2023.
• Primary rent probably rose at an above-trend pace in June, while airline fares likely stopped falling.
• Residual seasonality continues to blight the services price data; expect a bigger rise in June than in May. 

9 July 2025 US Monitor Only higher reciprocal tariffs on the EU would tangibly lift US inflation

• Exemptions and sector-specific tariffs cover most imports from Japan, leaving the “reciprocal” rate irrelevant.
• Raising the reciprocal rate of EU imports to 50% would boost the US CPI by nearly 1/2%, but a deal is likely.
• The NY Fed survey continues to paint a far more upbeat picture than the other major consumer surveys.

8 July 2025 US Monitor Will the OBBBA unlock a fresh wave of business investment?

• Capex rose in 2017-to-18 after the introduction of 100% bonus depreciation, but it was not the key driver.
• Tapering bonus depreciation in 2023 and 2024 left capex unscathed; firms are now worried about tariffs.
• Average hourly earnings growth is often volatile, but the recent slowdown has been flagged by surveys too. 

3 July 2025 US Monitor Will Mr. Trump blink again during the upcoming tariff spats?

• The average effective tariff rate will rise by a further 6pp next week, if no new trade deals are signed.
• But we doubt these additional tariffs will last; retaliation by trade partners will spur another climbdown. 
• The construction slump signals weaker growth in activity and employment, but likely not a recession

2 July 2025 US Monitor Labor demand is still weak, despite higher JOLTS openings

• Rising JOLTS job openings are driven by hospitality firms rehiring to comply with employment laws...
• ...Measurement problems also boosting the numbers; large downward revisions are now common.
• Tariff revenues currently equal 10% of the value of imports, but the effective tariff rate likely is higher.

1 July 2025 US Monitor Expect soft June payrolls, and yet another set of downward revisions

• The abundance of weak surveys points to a 100K first estimate for June payrolls.
• Downward revisions to estimated payrolls in April and May also are likely.
• Scraps of evidence suggest late responses from struggling small businesses explains the pattern.