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US economic growth is disappointing.European stocks rise based on company performance – when that happens | work

The relatively disappointing increase in GDP annually at 6.5% in the second quarter was well below the consensus of 8.5%. This includes an unexpected reduction in government spending associated with the end of the PPP program and a significant reduction in housing investment. is expected.

Fortunately, the economy is above pre-pandemic levels. However, GDP growth is expected to drop to 3.5% annually in the second half of this year due to factors such as the decline of fiscal stimulus measures, the decline in purchasing power due to soaring prices, the movement of delta variants in the south, and the decline in savings rates. ..

Real consumption increased at an annual rate of 11.8%, but there is no full monthly breakdown until tomorrow, but most of that increase is due to the momentum of spending entering the quarter, with real consumption probably in May. And June.

This will significantly reduce third-quarter performance, but it is estimated that second-quarter savings fell to 10.9% due to the downward revision in income growth. This is still a bit above the pre-pandemic average of 8%, but it is less likely that households will run out of savings when life returns to normal.

Overall, there was more evidence that the stimulus package produced surprisingly small profits, and the economy instead swiftly opposed unexpected supply constraints and pushed up inflation.

US economic growth is disappointing.European stocks rise based on company performance – when that happens | work

Source link US economic growth is disappointing.European stocks rise based on company performance – when that happens | work

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