Weekly Market Commentary April 6, 2026

Week in Review

Economic data released last week reflected continued moderation across several areas of the U.S. economy, alongside persistent inflation pressures in select sectors. Business activity indicators were mixed, with some measures remaining in expansion while others pointed to slower momentum.

Manufacturing data continued to indicate expansion. The ISM Manufacturing Purchasing Managers’ Index (PMI) increased to 52.7, remaining above the level that signals growth in factory activity. Pricing pressures within the manufacturing sector remained elevated, as the ISM Prices Paid index rose to 78.3, indicating ongoing increases in input costs. This data suggests that goods-related inflation pressures have not fully eased.

Outside of manufacturing, several services‑related and regional survey indicators showed signs of softer activity. Recent survey data indicate uneven growth conditions across sectors and regions, reflecting variation in underlying demand.

Labor market data remained relatively stable. ADP reported an increase of 62,000 private‑sector jobs in March. Initial jobless claims declined to 202,000, remaining near recent lows. The March employment report showed nonfarm payroll growth of 178,000, while the unemployment rate edged down to 4.3%. Average hourly earnings increased 0.2% month-over-month, reflecting a slower pace of wage growth compared with earlier periods.

Consumer activity data indicated continued spending. February retail sales increased 0.6% month-over-month, suggesting ongoing household expenditures despite elevated prices and higher interest rates. Overall, recent data point to a backdrop of slowing economic growth, gradual changes in labor market conditions, and inflation pressures that remain uneven across the economy.

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