Janet Mui: weekly economic update 26 April

In this week's video Janet discusses the latest US GDP data and the eurozone economy

25/04/2019
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Authors

Janet Mui
Global Economist, Cazenove Capital

Mixed US activity in the first quarter

While the overall US economy expanded at a robust 3.2% in the first quarter of 2019, growth in underlying domestic demand appears less impressive. For instance, household consumption growth slowed to 1.2% from 2.5% in the last quarter of 2018. The more volatile components such as inventory change and net trade added a combined +1.7% to Q1 GDP growth. This suggests some potential payback in growth in upcoming quarters. Inflation measures also slowed from last year. The data support the Fed’s patient stance on interest rates.

Eurozone manufacturing remains weak

Survey data on German business conditions disappointed in April, after staging a brief recovery in March. The manufacturing sector remains the key area of weakness. Meanwhile, in France, overall business confidence was slightly improved in April, but manufacturing remained weak. President Macron has announced a new round of reforms, most notably new tax cuts.

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Authors

Janet Mui
Global Economist, Cazenove Capital

Topics

US
Growth
Economic & Strategy Viewpoint
Video
Market views

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

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