Strategy & economics

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

Janet Mui

Janet Mui

Global Economist

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.

This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Contact Cazenove Capital

To discuss your DFM requirements, or to find out more about our services and how we can help you, please contact:

Nick Georgiadis

Nick Georgiadis

Head of DFM Team nick.georgiadis@cazenovecapital.com
Simon Cooper

Simon Cooper

Business Development Director simon.cooper@cazenovecapital.com