US: Consumption and less headwinds to keep engine running – Danske Bank

Research Team at Danske Bank, suggests that lthough the US GDP growth once again disappointed in Q1 and recent jobs reports have been weak, they do not think the US is slowing significantly.

Key Quotes

“We expect the economy to grow around 2.0-2.5% mainly driven by private consumption.

The US faces less headwind than previously: USD has weakened, credit spreads are lower, oil prices have rebounded and China has stabilised.

We still expect the Fed to hike again in September but risks are skewed towards a later hike.”