Economic Growth Disappoints Again in Q2
|U.S. Review
Economic Growth Disappoints Again in Q2
- GDP growth expanded at a 1.2 percent pace in the second quarter with consumer spending serving as the key driver of overall economic activity.
- Fed officials this week decided against a rate increase but signaled that improving economic conditions and greater labor market utilization will likely lead to a rate hike later this year.
- Durable goods orders fell again in June implying that the headwinds facing the manufacturing sector are likely to continue in the months ahead.
Global Review
Lower European Growth in Q2; Timid BoJ Decision
- Growth in the United Kingdom improved in the second quarter, growing a more-than-expected 0.6 percent, quarter over quarter, not annualized, up from an unrevised rate of 0.4 percent during the first quarter.
- The Eurozone economy slowed down in Q2 2016 by growing 0.3 percent on a sequential basis (not annualized) and compared to a print of 0.6 percent during the first quarter of the year.
- The Bank of Japan (BoJ) disappointed the market with a very timid response by expanding its purchases of exchange traded funds by ¥2.7 trillion a year.
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