August 29, 2024
United States:
US Economy Expands at Revised 3% Rate on Resilient Consumer
The US economy grew at a slightly stronger pace in the second quarter than initially reported, reflecting an upward revision to consumer spending that more than offset weaker activity in other categories.
Gross domestic product rose at a 3% annualized rate during the April-June period, up from the previous estimate of 2.8%, according to Bureau of Economic Analysis figures published Thursday. The economy’s main growth engine — personal spending — advanced 2.9%, versus the prior estimate of 2.3%.
Europe:
ECB’s Lane Says Wage Growth Set to Ease Significantly Next Year
Pay growth for workers in the euro zone — a key driver of inflation — will slow sharply in 2025 and 2026, according to European Central Bank Chief Economist Philip Lane.
The second half of this year will still see “plenty of wage increases,” Lane told a conference Thursday in Frankfurt, citing the ECB’s own tracker of salary trends. But “the catch-up is peaking now” and there’ll be a much less rapid pace in the next two years, he said.
Asia:
China’s Yuan Erases 2024 Losses Amid Broad Dollar Weakness
China’s onshore yuan erased its year-to-date losses amid bets capital will flow back to the country as the dollar weakens.
The currency rose as much as 0.5% to 7.0905 per dollar on Thursday, a level unseen since December. With the Federal Reserve expected to start cutting interest rates next month, some investors see Chinese corporates repatriating their foreign-exchange holdings to the domestic market, bolstering the yuan.
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