Thought for the day

US Sales Managers Survey Suggests Significant GDP Growth Will Continue Into the Third Quarter


 
Last updated: 24 July 2024
 
The US Sales Managers Survey Results for June reflect a likely acceleration of GDP growth levels seen in previous months of this year. All growth-related Indexes suggest an expectation of continuing modest-to-rapid economic expansion.

Real GDP year-on-year growth in excess of 2% is likely to continue into the second half of 2024.

So far, the great engine that is the American economy seems to be working well, largely untroubled by the anti-inflationary rises in interest rates, or the continuing shadow of disturbing political change globally that may impact negatively on economic growth.

US Prices Charged Index: June 2024
Diffusion Index. (50 = 'No Growth')
US Sales Managers Survey Suggests Significant GDP Growth Will Continue Into the Third Quarter
The evidence presented by the June Sales Managers Survey suggests that the Federal Reserve's interest rate hikes have had at best a very modest restraining impact on economic activity levels to date. However, the Fed's efforts at simultaneously cutting price inflation appear to be working less well. The Sales Managers Price Index continues to register relatively high monthly readings, suggesting that the dragon of Price Inflation has not yet been slain, and big cuts in interest rates are not likely to feature in the run up to the November election.
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