This week’s economic data isn’t just about growth or inflation—it’s about what happens when they collide. We’re at the edge of a classic macroeconomic dilemma: softening economic activity, sticky inflation, and deteriorating consumer sentiment. That’s textbook stagflation. We’re not in the 1970s, but the structure feels eerily familiar. In the U.S., inflation expectations are creeping up even as leading growth indicators soften. Europe is looking fragile, with consumers turning deeply pessimistic and industrial data still below water. Even in China, where headline PMIs suggest stability, deeper structural weaknesses persist. What’s alarming is the shift in sentiment—consumers across the U.S. and EU are flashing red. That’s usually the canary in the coal mine. So while headlines remain cautiously optimistic, the undercurrent is far more concerning.