US Economic Growth Will Likely Slow Down In 2H 2010
The US Conference Board’s index of leading indicators, which provides early signal on the direction of the economy over the next three to six months, fell by 0.2% mom in June, after a rebound to +0.5% in May. This was the second month of decline in three months, suggesting that the US economic recovery is losing momentum. The decline was reflected in drops in average workweek and the pace of deliveries as well as a slowdown in contribution from consumer expectations, money supply and interest rate spread. These were, however, mitigated by a pick-up in consumer goods orders and building permits as well as an improvement in orders of non-defence capital goods, indicating that the US economy will likely remain resilient despite some weakness. Meanwhile, the leading index’s six-month annual rate of change slowed down to 5.3% in June, from +8.1% in May and a high of +11.6% in December last year. This was the third consecutive month of easing, suggesting that the US economy will likely grow at a more moderate pace in the 2H of the year.
The World Economy...- 23/07/2010
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