Consumer spending, according to NAB’s transaction data, went up 0.5% in both retail and total spending after being broadly flat last month.
Report
August 30, 2022
US Economic Update – August 2022
Labour market still very tight despite GDP fall
Key highlights:
- While GDP declined in H1 2022 other data point to an economy still growing.
- The labour market remains very tight, and wage growth elevated.
- Against this backdrop, the softer than expected July inflation readings will not stop the Fed lifting rates further.
- Indeed, we have lifted our expectation for where rates will peak in this cycle to 3.50-3.75% (from 3.25-3.50%).
- We still expect that rate rises, as well as spill overs from recession in Europe, will lead to a recession in 2023.
Find out more in NAB’s US update (August 2022)
