Online Forex broker
In the first quarter, the economy of the United States speeded down more than previously predicted in the face of the poorest consumer spending for the last five years, although surge has regained momentum due to a firm labor market as well as tax cuts.
As a matter of fact, gross domestic product managed to ascend at a 2% annual rate from January to March. That’s what the Commerce Department informed on Thursday in its third prediction of first-quarter gross domestic product, versus the 2.2% tempo posted in May.
In the fourth quarter the American economy rallied at a 2.9% rate. Apparently, the downgrade to first-quarter surge pointed to weaker consumer spending as well as a smaller inventory build than the authorities had evaluated in May.
A $1.5 trillion income tax cut package that came into effect in January, is supposed to ensure faster economic surge in the second quarter, thus putting annual GDP surge on track to reach the Trump administration's 3% objective.
However, market experts point out that the administration's stance "America First" that has heightened worries of trade clashes, are threatening the economy's prospects.
America is involved in tit-for-tat trade duties with its key trade partners, such as Canada, Mexico, China and the EU. Market experts are afraid that the duties are capable of disrupting supply chains, undercutting business investment and even wiping out the fiscal stimulus.
Estimates of second-quarter surge point to a rate of 5.3%. Market experts had hoped first-quarter GDP surge wouldn’t be revised, keeping to a 2.2% tempo.
However, the moderate first-quarter surge can hardly be a true indicator of the US economy's health due to the fact GDP is prone to weakening at the start of the year due to a seasonal quirk.
Meanwhile, US equities were mostly intact.
American mortgage applications tacked on for the first time for five weeks because most home borrowing costs kept to their lowest value for 10 months…
The releases of employment change and the unemployment rate for Australia are expected on February 21, at 2:30 MT time.
The release of the Federal open market committee (FOMC) meeting minutes is scheduled on February 20, at 21.00 MT time.
Did Bitcoin manage to recover and what was the hottest news in the crypto and blockchain world? Read and find out!
On Monday, Asian stocks traded mostly higher, with Shanghai bucking the trend because centrist Emmanuel Macron fully matched opinion survey hopes and left anti-EU far-right nominee Marine Le Pen behind…
Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…
Your request is accepted.
A manager will call you shortly.
Internal error. Please try again later
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
