US Publications
Below is a list of our US Publications for the last 5 months. If you are looking for reports older than 5 months please email info@pantheonmacro.com, or contact your account rep
Please use the filters on the right to search for a specific date or topic.
Emerging Asia Chartbook Weekly Monitor
- Tariffs continue to lift core goods prices; passthrough is now about two-fifths complete…
- …But core services inflation remains in check and the weakening labor market will drag it lower.
- Higher goods inflation will be fleeting, while falling services inflation will enable the FOMC to ease.
- Regional banks are under renewed scrutiny, oil prices have tumbled, and the shutdown is going long...
- ...So markets are starting to see a meaningful chance of a 50bp easing in December.
- But timely data imply the labor market and GDP growth are holding up; 25bp is still more likely.
- Consumers’ major purchase intentions have fallen sharply, signalling flat spending on durable goods.
- NRF and Redbook data point to a drop in retail sales in September, ending a strong three-month run.
- Most measures of spending on discretionary services have weakened, consistent with a lackluster Q4.
- Households have delevered over the last five years and many have fixed-rate mortgages with low rates.
- Reducing the funds rate to 3% next year merely would stabilize the effective mortgage rate.
- The weakness in the ISM surveys in Q3 probably is understating the economy’s underlying momentum.
- Spending numbers up to August point to 3% growth in third quarter consumption...
- ...But that pace looks unsustainable, given the myriad headwinds facing households.
- Real after-tax incomes are flatlining, the saving rate is already low, and balance sheets are more fragile.
GDP LIKELY REGAINED SOME MOMENTUM IN Q3...
- ...BUT CONTINUED CAUTIOUS HIRING WILL SPUR FURTHER EASING
- Financial conditions have improved for large firms; the bond refinancing headwind has almost gone...
- ...But the option value of waiting for more information is high; the federal policy outlook is uncertain.
- Small businesses still face tight credit conditions; FDI is costlier; and profits are now being squeezed.
- A 25bp easing this week is highly likely, but the vote probably will be split three ways.
- Committee members are still divided on whether rising inflation or unemployment is the bigger risk...
- ...That discord will rule out clear guidance on future easing, though markets will still price-in a big shift.
- Payrolls lack momentum, but the first estimate for August jobs typically is revised upwards.
- Labor market slack is building, but less quickly than a year ago, when the FOMC eased by 50bp.
- The upcoming easing cycle, however, will be prolonged; we still look for 150bp cut by mid-2026.
- Near-real time data imply July’s 0.3% increase in real spending was followed by another solid rise in August...
- ...But spending has been stimulated by further tariff fears; real after-tax income growth is slowing.
- Households have exhausted their excess savings and a strong positive wealth effect is no longer in play.
- Chair Powell’s Jackson Hole speech flags a September easing, with more cuts likely to follow.
- High long-term Treasury yields reflect policy risks rather than the Fed losing its inflation credibility…
- …We think the Trump administration should step back and let the FOMC do its job.
THE ECONOMY WILL REMAIN STUCK IN A LOW GEAR IN H2
- UNEMPLOYMENT WILL WORRY THE FED MORE THAN INFLATION
- Growth in consumers’ real spending has stabilized following in sharp slowdown in H1 2025...
- ...But the labor market is set to remain weak, and most of the uplift to prices from tariffs lies ahead.
- We think spending will grow only at a meager 1-to-1½% pace in second half of this year.
- Adobe and PriceStats data point to a slowing passthrough from the tariffs to consumer prices...
- ...But the ISM services survey sends the opposite signal; we are taking the middle position.
- Demand for air travel seems to be recovering, but hotel room rates likely are sustainably lower.
- Meager job gains in July and huge downward revisions leave payrolls looking far weaker than before.
- Private payrolls ex-healthcare fell by 16K per month on average in the three months to July.
- The stable unemployment rate reflects young people deferring active job search; hidden slack is mounting.
- We think headline GDP leapt by around 3% in Q2 overall, but underlying growth was much weaker…
- …Look for a tepid 1½% gain consumers’ spending and a drop of about 2½% in fixed investment…
- …But measurement issues likely meant a huge contribution from net trade was only partly offset elsewhere.
CONSUMERS’ SPENDING IS SLOWING...
- ...WEAKER PAYROLLS IN Q3 WILL EXERT FURTHER PRESSURE
- The jump in June education jobs is more likely to be revised away than to unwind over coming months.
- June education jobs were revised down in 2022, 2023 and 2024; no other data corroborate the 2025 jump.
- A structural break following a mid-2024 methodology change makes the Michigan survey hard to believe.
- The slowdown in consumption this year has been sharpest in areas dominated by higher earners...
- ...Slower asset price gains and expected real wage declines have weighed more than tax hike risk.
- Mortgage applications have risen sharply; people are fed up waiting for mortgage rates to fall.
- June private payrolls ex-education and healthcare rose just 23K; revisions will reveal an even weaker picture.
- Hiring intentions remain depressed; new tax breaks are unlikely to offset tariff costs and uncertainty soon.
- The drop in unemployment looks like noise; payroll growth will undershoot the break-even rate in H2.
