The economy remains on track to expand at a faster clip in Q2 after a bleak Q1 performance. The ISM manufacturing index firmed up in May following two consecutive months of decline thanks to a faster pace of job creation and resilient output growth. In addition, the unemployment rate inched down to a 16-year low in May, further shoring up households’ disposable income at a time of meager wage growth and tightening financial conditions. Indeed, although retail sales surprised on the downside in May despite buoyant consumer sentiment and a robust labor market, upward revisions to the previous months more than made up for May’s miss.