- We’re lifting our forecast for German Q1 GDP growth, by 0.2pp to 0.2% quarter-to-quarter.
- German manufacturing and services output are on the mend, while retail sales are still stuck in the mud.
- Construction was boosted by mild weather in Q1; output will fall sharply in the second quarter.
Claus Vistesen (Chief Eurozone Economist)Eurozone
- The first estimate of 23/24 borrowing topped the OBR’s forecast by £7B, but revisions may improve the picture.
- The OBR will likely revise up its forecast for debt interest payments and nudge it down for the tax-to-GDP ratio...
- ...But the Chancellor can pencil in even more implau- sible forecasts for spending in order to cut taxes now.
Rob Wood (Chief UK Economist)UK
- In one line: Output prices likely rising more slowly than the CBI’s survey implies.
Rob Wood (Chief UK Economist)UK
- In one line: A strong—but dumb—policy response.
Miguel Chanco (Chief EM Asia Economist)Global
A SMALL WOBBLE AS MORTGAGE-RATE DROP PAUSES...
- ...BUT PRICES WILL STILL RISE 4% IN 2024
Rob Wood (Chief UK Economist)UK
- US - Slowing incomes and a rising saving rate threaten consumption
- EUROZONE - A decade covering the EZ; what have we learnt, and what’s next?
- UK - Inflation surprise cannot be dismissed as Easter volaility
- CHINA+ - China begins to flesh out its consumer goods trade-in plan
- EM ASIA - Malaysian manufacturing growth will only pick up further from Q1
- LATAM - Brazil’s economy starts 2024 on a solid footing, but challenges loom
Ian Shepherdson (Chief Economist, Chairman and Founder)Global
- S&P's employment index has inaccurately pointed to sharp slowdowns in growth in payrolls before...
- ...but its grim message should be taken seriously now, given that it is echoed by the NFIB survey.
- Easter effects point to a downside surprise in durable goods orders ex-transportation.
Ian Shepherdson (Chief Economist, Chairman and Founder)US
- LatAm central banks are taking a cautious approach to monetary policy due to a still-hawkish Fed.
- Mexico’s economic activity rebounded solidly in February, helping to avert a sharper downturn in Q1.
- Increased fiscal support is boosting growth, but rising real rates pose challenges in H2.
Andres Abadia (Senior International Economist)Latin America
- The strong 2024 run in India’s PMIs continued in April, but they still point to sub-8% GDP growth…
- …Hiring appears to have regained momentum recently, but the hard EPFO data remain sluggish.
- Continued headline disinflation in Singapore will be tough, as the low-hanging fruit has been picked.
Miguel Chanco (Chief EM Asia Economist)Emerging Asia
- The rise in the EZ composite PMI suggests we should expect a pick up in GDP growth in Q2.
- Higher selling price expectations won’t prevent an ECB cut in June; they still point to lower inflation.
- The SNB’s tweak to minimum reserve requirements is not as big a deal as markets think.
Melanie Debono (Senior Eurozone Economist)Eurozone
- The PMI is consistent with 0.4% quarter-to-quarter GDP growth in Q2, above the MPC’s 0.1% forecast.
- The PAYE employment drop in March looks like noise, as the PMI records strengthening jobs growth.
- Price pressures remain elevated, with the minimum-wage hike boosting input price inflation.
Rob Wood (Chief UK Economist)UK
Residential investment bounced in Q1.
Oliver Allen (Senior US Economist)US
- In one line: Post-festive spending fatigue hits growth.
Moorthy Krshnan (Senior Asia Economist)Emerging Asia
In one line: Gaining steam, even though seasonals are likely behind some of the pick up.
Melanie Debono (Senior Eurozone Economist)Global
In one line: Gaining steam, even though seasonals are likely behind some of the pick up.
Melanie Debono (Senior Eurozone Economist)Eurozone
