‘WALL OF WORRY': Economist sounds alarm on new economic data

• Consumer confidence is surging, especially among independent voters and those under 35, with both present conditions and expectations improving.
• The labor market is healing, with unemployment claims historically low and small businesses (major job creators) feeling more optimistic and increasing hiring intentions.
• A manufacturing renaissance is underway, driven by lagged effects of Fed easing and significant fiscal incentives like full CapEx depreciation, leading to reshoring efforts.
• Nancy Lazar disagrees with the notion of AI causing a negative feedback loop for jobs, arguing that technological innovation improves productivity and creates new industries and jobs through 'creative destruction'.

Piper Sandler Chief Global Economist Nancy Lazar discusses surprising strength in the U.S. economy, highlighting surging consumer confidence, improving labor market conditions, and a manufacturing renaissance. Despite a 'wall of worry' from some economists, she sees underlying health driven by small businesses, fiscal policy, and technological innovation, which she believes will lead to new job creation.