On Friday, US GDP figures were released. US real GDP grew by 3.2%, stronger than the predicted figure of 2.3%. Whilst Trump’s political allies and Trump himself are celebrating this, many economists are stating that the report isn’t as impressive when you focus on the details.
Consumer spending growth slowed to just 1.2% and residential construction fell by 2.8% – the fifth decline in a row. It has also been highlighted that inventory building contributed to the overall growth figure, adding 0.65% points. The dollar fell slightly in the wake of the GDP data.
This week, we look ahead to Non-Farm Payroll figures on Friday, which is forecast to show an increase of 180,000 in April, with unemployment at 3.8%.
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