Bassanese Bites: Weak GDP Ahead – September 02 2019
After a very worrying start, global equities eventually recovered over the course of last week – thanks to no immediate Chinese retaliation to Trumps’s latest tariffs hikes and ongoing signals that the two sides are still at least talking. Hope springs eternal!
It helped also that US economic data remained encouraging. US Q2 annualised GDP growth was revised down only a touch to 2.0%, underpinned by still strong consumer spending. Consumer confidence also held at high levels. Core capital goods orders (a timely monthly proxy of business investment) also held up in July, and are showing little sign of capitulation just yet.