Record Gap Between Hard And Soft Economic Data

Economic data

Since the end of last year, US business sentiment data has improved dramatically off the back of heightened business optimism. Expectations surrounding Donald Trump’s proposed regulation bonfire and corporate tax cuts has pushed so-called soft (sentiment) data in the US to an all-time high.

However, while the soft data appears to show a bright outlook for US businesses’ the hard data (quantifiable) shows a different picture altogether, as Goldman recently pointed out as well.

Economic Data -  - Divergence Between Hard Data And Soft Data at record

Morgan Stanley’s Graham Secker, chief European equity strategist and Matt Hornbach, the global head of rates strategy for the bank captured this divergence in a great chart published last week. The chart shows...