(The Center Square) – A higher-than-expected increase in the unemployment rate caused significant panic last week. However, data from the Institute for Supply Management indicated that the services sector expanded in July, while the commerce department data showed initial jobless claims fell. The stock market made a modest recovery, partially erasing some of the week’s losses, and Treasury yields rebounded slightly.

While there are numerous indicators suggesting that recession fears may have been exaggerated, this week’s retail sales data will be crucial in alleviating investors’ concerns that a slowdown in consumer spending could drag down economic growth.