The US economy is sending mixed signals, and it’s hard to predict what’s going to happen next. There are so many conflicting economic signal

The US economy is sending mixed signals, and it's hard to predict what's going to happen next. There are so many conflicting economic signals and contradictory data:

• The stock market signals optimism but bond markets are predicting a recession

• Manufacturing surveys are showing trouble but service sector measures are healthy, an odd imbalance.

• Even GDP and income measures disagree on economic activity.

• Housing data is mixed too (based on permits vs construction spending).

• Sentiment surveys are more downbeat than hard data on growth and jobs.

Hard data has been coming in well above expectations, while soft surveys have disappointed.