27 June 2024
If you are covering the US GDP revision for the first quarter, please see the following comment from Lindsay James, investment strategist at Quilter Investors:
"Although US GDP growth in the first quarter has been marginally revised up from earlier readings, it has been on a slowing path over the past two quarters, acting as a clear reminder that interest rates operate with a lag. While the uninspiring reading for the first quarter of 2024 must be balanced with the overall strong rate of growth in the second half of 2023, it is also evident that consumers are now feeling the effects of a higher cost of debt, with falling consumer confidence also impacting larger spending decisions.
“However, the US economy remains in a stronger position than the UK and Europe, benefitting from renewed growth in labour productivity, a healthy level of innovation and a better demographic profile, while also being the home to some of the most profitable companies on the planet. Similarly, a softening rate of growth will ultimately help the Federal Reserve in its battle with inflation, likely leading to interest rate cuts by the end of 2024.
“With a selective approach in what is a very deep market, US equities remain an attractive asset class for investors.”
