Current Economic Picture: The economy shows mixed signals with resilient consumer spending offset by manufacturing weakness. Inflation remains above the Fed’s 2% target, suggesting rates will stay elevated through year-end.

Investment Implications: Consider defensive positioning with a focus on quality stocks and short-duration bonds. Sectors benefiting from consumer resilience (retail, services) may outperform manufacturing-heavy sectors. The elevated rate environment continues to favor money market funds and short-term treasuries.