Michael Pearce News

United States soared past analyst expectations in July, according to government data released Thursday, helped by the autos segment and bringing some relief to policymakers. US consumption has remained resilient despite high interest rates, and experts are closely monitoring if this continues to hold up until the central bank begins rate cuts. A weaker than expected labor market report recently sparked market turmoil, over fears that the world's biggest economy was in worse health than anticipated.

Donald Trump lambasted globalization as a raw deal for the United States that has devastated US manufacturing towns. Trump left out the upside to the United States from the liberal flow of goods: a reliable supply of affordably priced appliances, clothing and electronics whose consumption has helped lift US economic growth above other developed economies in recent years. «Obviously we've benefited significantly,» said Paul Gruenwald, global chief economist at S&P Global Ratings. «We get to consume a lot of things that are produced more efficiently in other countries.» Trump's tariffs are almost certain to negatively impact this dynamic, say economists who see the levies lifting the price on everything from Gap t-shirts to the Apple iPhone to French wine. «This is very clearly going to raise consumer prices,» Michael Pearce, a US economist with Oxford Economics, said of the barrage of levies announced late Wednesday in an unveiling the White House billed as «liberation day.»

Americans unexpectedly paused their spending in April from March as inflation continued to sting and elevated interest rates made taking on debt more burdensome

A new round of nowcasts continue to estimate that US economic activity will downshift in next month’s release of first-quarter GDP data. Today’s revised estimate is based on the median for a set of nowcasts compiled by CapitalSpectator.com.

An inflation gauge that is closely monitored by the Federal Reserve showed price increases remained elevated in September amid brisk consumer spending and strong economic growth