July 27, 2023
United States:
US GDP Growth Accelerates to 2.4%, Blowing Past Estimates
US economic growth unexpectedly picked up steam in the second quarter thanks to resilience among consumers and businesses in the face of high interest rates.
Gross domestic product rose at a 2.4% annualized rate after a 2% pace in the previous three months, the Commerce Department’s initial estimate showed Thursday. Consumer spending increased at a 1.6% pace, more than forecast, after surging at the start of the year.
Europe:
ECB Hikes Rates Again While Keeping September Options Open
The European Central Bank lifted interest rates by another quarter-point while keeping options for the next meeting open as its unprecedented hiking campaign nears an end.
A ninth straight increase since last July brought the deposit rate to 3.75% on Thursday — as economists expected. The lack of guidance for September’s decision means the ECB may raise again, or hold, depending on the strength of its conviction that inflation is headed back to the 2% goal.
Asia:
China Debt Ratio Hits Record But Pace of Borrowing Is Easing
China’s debt-to-GDP ratio rose to a record in the second quarter, although consumers and businesses are borrowing at a slow pace, reflecting low confidence that’s hitting economic growth.
Total debt — combining the household, corporate and government sectors — climbed to 281.5% of gross domestic product in the second quarter, according to Bloomberg’s calculations based on data from China’s central bank.
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