Will the Economy Stabilize in Q2 After Consecutive Quarterly Downshifts?

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Will the Economy Stabilize in Q2 After Consecutive Quarterly Downshifts?
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activity suggest output may stabilize after two straight quarters of slower growth, based on the median for a set of nowcasts compiled by CapitalSpectator.com. This estimate should be viewed cautiously this early in the current quarter, but for now the current data suggest that economic activity may be set to normalize after post-pandemic volatility.

The caveat is that there’s still a high degree of uncertainty about second-quarter economic activity due to the calendar. Indeed, hard data about April’s economic profile remains in short supply; meanwhile, May and June are still the realm of guesswork. That aligns with the view of Carson Group’s global macro strategist Sonu Varghese, who says US economic activity remains robust.

Nonetheless, today’s 1.9% median estimate for Q2 GDP is encouraging. It’s too early to take this number seriously, but we have a baseline for gauging how economic activity evolves in the weeks ahead. For the moment, cautious optimism prevails.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

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