US: Underlying trend in private domestic demand subdued – BNP Paribas

Analysts at BNP Paribas point out that the US growth picked-up by early 19 but this was partly due to one-off factors like inventory building and the underlying trend in private domestic demand is more subdued.

Key Quotes

“The housing market is softening, corporate investment should slow, as well as exports in reaction to the past strengthening of the dollar and trade tensions. Core inflation remains well under control and has eased a bit.”

“Following the neutral message from the May FOMC meeting, we believe the Fed Funds target rate as well as the IOER will keep unchanged.”