Business Maverick: US Economy Seen Narrowly Averting Back-to-Back Contractions

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 84%

Singapore News News

Singapore Singapore Latest News,Singapore Singapore Headlines

The US economy may have eked out modest growth in the second quarter, skirting back-to-back quarterly contractions, but rising at a tepid enough pace to feed concerns of an eventual downturn.

of the trade deficit in the second quarter likely added to GDP, consumer spending probably decelerated further.about the wherewithal of consumers to sustain discretionary spending, especially for big-ticket items. The retail heavyweight’s warning follows a similar move last month by Target Corp. as companies contend with a buildup in stockpiles of unwanted merchandise.

“One thing that we’re all watching is how swiftly underlying activity is slowing down,” said Andrew Hollenhorst, chief US economist at Citigroup Inc. “Economists can debate what a recession is, but at the end of the day, if businesses and individuals believe there is a recession that’s how they’ll behave.”

In the US, a group of academics at the National Bureau of Economic Research makes the official recession call. They define a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months” and look at a variety of factors to make their determination.Data released Wednesday prompted a few economists, including those at JPMorgan Chase & Co., to raise their second-quarter GDP forecasts.

. The Fed has embarked on the most aggressive tightening campaign since the 1980s and is expected to boost interest rates by yet another 75 basis points later on Wednesday.Consumer spending, the main engine of the US economy, will be the most important part of the report for many. Economists project that outlays decelerated further in the second quarter to an annualized rate of 1.2%, the weakest pace of the expansion.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Carol Paton | Business, labour and all of us just need government to govern | Fin24OPINION | President Cyril Ramaphosa says his ministers are talking to business and labour, but business says it cannot commit to government's framework document. Labour is equally annoyed that government is not listening, writes politicsblahbla.
Source: News24 - 🏆 4. / 80 Read more »

Business Maverick: US futures up on earnings, while Asia stocks dip pre-Fed: Markets wrapUS equity futures rallied on Wednesday after resilient earnings from Google parent Alphabet and an upbeat outlook from Microsoft helped alleviate some of the wider caution in markets. I am super excited right now, I can now pay my bills and take good care of my family.. Thank you for bringing happiness to my home with just R10,000 i got R100,000 in 7days James_Alderson8
Source: dailymaverick - 🏆 3. / 84 Read more »