June 3, 2024
United States:
Key Engines of US Consumer Spending Are Losing Steam All at Once
The main drivers behind the remarkably resilient American consumer are losing steam at the same time, suggesting a recent pullback in household demand may be more than just a one-off.
Real disposable incomes have risen only modestly over the past year. The saving rate now stands at a 16-month low as households have mostly exhausted the extra pile of cash they squirreled away during the pandemic. In turn, many Americans are increasingly relying on credit cards and other sources of financing to support their spending.
Europe:
German Minister Expects ECB Rate Cut Soon, Hopes More Follow
German Economy Minister Robert Habeck said he hopes more interest-rate cuts will follow after the European Central Bank begins its widely anticipated monetary easing cycle this week.
“Inflation is retreating toward 2%,” Habeck said Monday at an East German business forum in Bad Saarow near Berlin. “I think the ECB will cut the key interest rate in the near future and hopefully further interest-rate cuts will follow.”
Asia:
China Manufacturing Growth Fastest in Two Years, Survey Says
China’s manufacturing activity expanded at the fastest pace in almost two years in May, according to a private survey, contrasting with weak official data that dented the country’s growth outlook.
The Caixin manufacturing purchasing managers index rose to 51.7 last month from 51.4 in April, slightly above the median forecast of 51.6 by economists in a Bloomberg poll and the highest since June 2022. Any reading above 50 suggests an expansion.
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