The document summarizes US macroeconomic data from May 16-20, noting that several indicators were soft, including the Citigroup US economic surprise index, initial jobless claims, and the Philly Manufacturing Index. Capacity utilization was down slightly while industrial production was flat, suggesting continued slack in the system. Housing starts bounced back but negotiations over raising the debt ceiling continued, with risks that a large reduction in the projected deficit could push the output gap past $1 trillion.