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1 Apr 2015
US economy might rebound from its previous data slump – BBH
FXStreet (Barcelona) - Previewing the US data releases ahead, the Brown Brothers Harriman Team explain that the recent slump was as a result of seasonal factors and the economy is set to rebound.
Key Quotes
“The US session features the ADP employment estimate (225k expected after 212k in February), ISM manufacturing (52.5 expected, down slightly from February's 52.9), and March auto sales (expected to snap a three-month softening streak and rise to 16.9 mln unit pace from 16.16 mln).”
“Investors have come to accept that Q1 growth in the US was poor, and like last year, weather was an important drag. The West Coast port shutdowns also played a role.”
“In addition, after posting its best quarterly advance in a decade, consumption also eased (and weather was likely a factor as well).”
“The headwinds are expected to prove transitory and with warmer weather, an economic rebound is expected.”
Key Quotes
“The US session features the ADP employment estimate (225k expected after 212k in February), ISM manufacturing (52.5 expected, down slightly from February's 52.9), and March auto sales (expected to snap a three-month softening streak and rise to 16.9 mln unit pace from 16.16 mln).”
“Investors have come to accept that Q1 growth in the US was poor, and like last year, weather was an important drag. The West Coast port shutdowns also played a role.”
“In addition, after posting its best quarterly advance in a decade, consumption also eased (and weather was likely a factor as well).”
“The headwinds are expected to prove transitory and with warmer weather, an economic rebound is expected.”