There is much debate about the direction of the U.S. economy these days with nervousness over trade tensions, credit accumulations, Federal Reserve policy and more.
| | | Looking Beyond GDP Figures, What are Markets Saying? | | There is much debate about the direction of the U.S. economy these days with nervousness over trade tensions, credit accumulations, Federal Reserve policy and more. All add up to variables that can put the brakes on business expansion. With all that in mind, I wanted to take a step back this week to look at a few other economies and dig deeper into the numbers. | | In the United States, gross domestic product (GDP) famously came in at 3.2 percent for the first quarter, but that number reflected the build-up of inventories and an unexpected improvement in the trade balance, factors that are expected to reverse in the future. Notably, trade improvement resulted from a drop in imports, even as import prices fell. Other countries mirror similar economic activity. In Japan, first quarter GDP came in stronger than expected partly due to improvements in net exports. | | This boost to net exports was due to weak domestic demand causing imports to drop more than exports. Additionally the usual drivers of the economy — exports, capital spending and private consumption — all declined during the quarter, with exports tumbling 2.4 percent, the most since 2015. In the United Kingdom, GDP rose on stockpiling of goods in anticipation of economic uncertainty due to Brexit. | | Watch the video | | If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133. | | Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos! | | | | | | | Follow City National Bank on social media: | | | | | | Non-deposit investment products: | | • | Are not FDIC insured, | | • | Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and | | • | Are subject to investment risks, including possible loss of the principal invested. | | | | | This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting. | | | | | | |
Comments
Post a Comment