Janet Mui: weekly economic update 14 June
UK and Eurozone data indicates weakening economic performance and, in the US, slowing inflation is expected to add to the case for a rate cut
- Latest UK GDP data shows a contraction, following evidence of Brexit-related stockpiling in the first quarter
- The UK’s weakness comes largely from disappointing manufacturing, linked both to Brexit and global trade
- Eurozone industrial production is declining, and we think it likely the ECB will reopen discussion on possible stimulus options
- In the US, weaker-than-expected inflation, coming on top of last week’s disappointing job numbers, add to the pressure to cut rates
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