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4 Jul 2014
US activity, inflation indicators tick higher - BNZ
FXStreet (Łódź) - The BNZ team of economists observe that in June US activity and inflation indicators continued to point to a steady recovery.
Key quotes
"The May employment data came in largely as expected, which assured investors that the US had shaken off its Q1 weather-related lethargy."
"That said, there was some sticker shock associated with the second estimate of Q1 GDP. At -2.9% y/y annualised, it was the worst quarter since Q1 2009."
"Analysts expect a strong rebound throughout the rest of the year, with Q2 picked at +3.5%, and Q3 and Q4 to average around +3.1%."
"More pressingly, though, are signs that inflation is on the rise. Both the core CPI and PCE pushed higher in May, raising questions about whether the Fed might be caught behind the curve."
Key quotes
"The May employment data came in largely as expected, which assured investors that the US had shaken off its Q1 weather-related lethargy."
"That said, there was some sticker shock associated with the second estimate of Q1 GDP. At -2.9% y/y annualised, it was the worst quarter since Q1 2009."
"Analysts expect a strong rebound throughout the rest of the year, with Q2 picked at +3.5%, and Q3 and Q4 to average around +3.1%."
"More pressingly, though, are signs that inflation is on the rise. Both the core CPI and PCE pushed higher in May, raising questions about whether the Fed might be caught behind the curve."