Oddbean

US economy shows further signs of slowing under high rates ========== Wide-ranging economic data illustrates a downshift in US growth over the first half of the year tied to both the Federal Reserve’s higher-for-longer borrowing costs policy and lingering inflation. The government marked down personal spending to an annualized 1.5% in the first quarter. Other data showed declines in orders and shipments of certain business equipment, the widest trade deficit in two years, weakness in the job market, and a slide in homebuying. The Atlanta Fed’s GDPNow forecast now pegs second-quarter growth at 2.7%. The impact of mortgage rates around 7% on the housing market was illustrated by the National Association of Realtors index of contract signings for previously owned homes slumping to the lowest level in records back to 2001. Signs of financial strain suggest cooler growth in the coming months, with after-tax personal income rising just 1.5% in the first quarter compared with a year earlier. Labor demand is moderating, with continuing jobless claims climbing to the highest level since 2021. The value of core capital goods orders matched the biggest drop this year, and core capital goods shipments decreased 0.5%, the most in three months. The US merchandise trade gap swelled to $100.6 billion in May, the widest in two years, as exports dropped. #UsEconomy #EconomicGrowth #FederalReserve #BorrowingCosts #Inflation https://theedgemalaysia.com/node/717157