Falling Loan Demand Another Blow To Soft Data

During the last few months of 2016 and first few months of 2017, it seemed as if the so-called Trump-bump would have an enormous positive impact on economic and corporate activity. Soft data readings such as consumer sentiment and small business optimism, surged to records following Trump’s election as his pro-business rhetoric inspired consumers and business owners alike. However, during the past few months, an enormous gap has opened up between hard data readings and indicated soft data readings. For example, for the month of March consumer sentiment hit its highest level since 2000. Meanwhile, small business optimism hovered around its highest readings in 43 years. The hard data is telling a very different story. Retail sales edged up...