-
Goldilocks GDP feeds the US soft landing narrative
We’ve got a nice combination on the US data front this morning for risk assets. Second-quarter GDP growth is stronger than expected (2.4% vs 1.8% consensus), led by consumer spending and investment with inventories not being as important a growth driver as thought likely. Meanwhile, the core PCE price deflator slowed to 3.8% annualised from 4.9% (consensus 4%). So we’ve got decent growth with slowing inflation while jobless claims fell to 221k from 228k and continuing claims dropping to 1,690k from 1,749k, which have further helped to boost the soft landing narrative. At the same time June durable goods orders ... (full story)