The Weekly Brief
Global Market Insights Strategy Team
The US economy contracted at an annualised pace of 32.9% in the second quarter
While we believe the worst is behind us we think the path ahead will be bumpy as the economy battles to re-open without leading to a reacceleration in infections. The most recent high-frequency data show the difficulty in achieving that balance – the pace of the recovery appears to have slowed in July as consumers are cautious of going out and spending amid high infection levels. 18 million Americans are still out of work and the enhanced unemployment benefits have now lapsed. With the economy far from ready to stand on its own two feet, the importance of political agreement on a new support package is clear.
US economy posted historic real GDP contraction in the second quarter
% change quarter on quarter, annualised rate