US economy growing at a steady rate, data suggests – SocGen

FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, suggests that the US services ISM data were a touch weaker than expected but if we look at a composite figure, and plot it against GDP, it’s consistent with nearly 2 ½% growth at the moment.

Key Quotes

“Yesterday’s ADP private sector employment data were very strong at 257k and even if that doesn’t really tell us much about tomorrow’s payroll data, the underlying strength of job creation remains intact. The US economy is growing at a steady rate even if manufacturing isn’t immune from global drag.

Obviously, collapsing oil prices will drag headline inflation lower and that, along with a likely very soft Q4 GDP print, will have a bearing on the pace of Fed hikes but there’s enough strength in the US economy to keep them hiking, and to keep the dollar in, at the very least, second-favourite spot in FX-land after the yen.”

Kit Juckes, Research Analyst at Societe Generale, suggests that the US services ISM data were a touch weaker than expected but if we look at a composite figure, and plot it against GDP, it’s consistent with nearly 2 ½% growth at the moment.

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