August 17, 2017

US Economic Update: August 2017

After a sluggish start to the year, GDP growth rebounded in the June quarter and the labour market continues to tighten.

Key points:

  • The large fall in the non-manufacturing ISM indicator in July is probably exaggerated and, together with the rebound in GDP growth, points to a re-alignment of the ‘hard’ activity data with the ‘soft’ business survey measures.
  • Growth is expected to remain modestly above the economy’s longer term trend; in the near-term it will be supported by the easing in financial conditions that has occurred despite Fed rate hikes.

For further details please see the attached document.

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