The latest economic data indicates that the US economy is performing well, with retail sales exceeding expectations. Month-over-month retail sales increased by 0.6%, compared to the anticipated 0.1%, while the control group rose by 0.5%, surpassing a 0.3% forecast. Despite these nominal increases, consumers' real purchasing power is declining due to persistent inflation. The Philly Fed survey shows strong signs of economic recovery, with metrics like the CAPEX index at 17.10 and new orders at 18.4, both reflecting significant improvements. Additionally, initial weekly jobless claims fell below expectations, indicating a robust labor market. However, the disparity between initial claims and continuing claims suggests that while layoffs are not widespread, those who lose jobs may struggle to find new employment. Overall, both hard and soft economic data point towards a rebound and improvement in the economic landscape.

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