Yardeni Research finds evidence that AI boom is extending beyond major tech companies into broader U.S. economy, supporting hiring and business formation.

Job openings rose to 7.62 million in April, the highest reading since May 2024 and the largest monthly increase since 2020. Job openings at firms with one to nine employees jumped 69% from the previous month, while professional and business services recorded a 64% surge.

Manufacturing activity improved with the ISM manufacturing PMI climbing to 54.0 in May, its highest level since 2022. Construction spending rose for a second straight month in April, helped by rapid growth in data center development as companies invest heavily in computing infrastructure.

Consumer demand remained resilient: the Redbook same-store retail sales index recently reached its highest level since late 2022, while the Atlanta Fed's GDPNow model continues to project solid second-quarter growth. However, the ISM prices-paid index held at 82.1 in May, suggesting businesses continue to face rising costs.