1 May 2014
Growth in US to pick up gradually – Danske Bank
FXStreet (Edinburgh) - Allan von Mehren, Chief Analyst at Danske Bank, expects the US economy to accelerate its recovery later in the year.
Key Quotes
“Bond yields declined yesterday following the very weak US GDP report for Q1 showing growth of only 0.1% q/q annualised. Had it not been for a temporary lift to consumption from the new healthcare insurance, the economy would have declined in Q1”.
“However, part of the weakness is also due to temporary factors (such as weather) and ahead we look for US growth to re-accelerate to 3-3.5% in coming quarters”.
“Other US data yesterday confirmed this picture as both Chicago PMI and ADP employment for April beat expectations”.
“Stock markets showed more gains yesterday as weak GDP keeps the Fed firmly on autopilot with no rate increase in sight for at least a year, while other data confirmed that growth will likely recover moderately”.
Key Quotes
“Bond yields declined yesterday following the very weak US GDP report for Q1 showing growth of only 0.1% q/q annualised. Had it not been for a temporary lift to consumption from the new healthcare insurance, the economy would have declined in Q1”.
“However, part of the weakness is also due to temporary factors (such as weather) and ahead we look for US growth to re-accelerate to 3-3.5% in coming quarters”.
“Other US data yesterday confirmed this picture as both Chicago PMI and ADP employment for April beat expectations”.
“Stock markets showed more gains yesterday as weak GDP keeps the Fed firmly on autopilot with no rate increase in sight for at least a year, while other data confirmed that growth will likely recover moderately”.