US economy 'to operate at low speed in the first half of 2024'

According to recent information on Bloomberg, US economic growth tends to decline in the first half of this year due to the impact of inflation and the Federal Reserve's policy of maintaining high interest rates for a long time.

The US economy showed signs of decline in the first half of 2024. (Source: AP)

Specifically, personal spending - the main driver of the economy - fell 0.5 percentage point to 1.5% in the first quarter of this year. The decline was also evident in the number of orders and shipments of some business equipment, while the trade deficit was the largest in two years, the job market was weak and home purchases declined.

Bill Adams, chief economist at Comerica Bank, said the world's largest economy is "operating at a low speed in the first half of 2024", although personal spending has recovered somewhat in May.

The country's goods trade deficit widened to $100.6 billion in May, the biggest in two years, as exports fell, government economic data showed, while figures also showed a rise in inventories at wholesalers and retailers.

Signs of financial stress, modest labor demand, rising jobless claims and challenges from a stronger dollar are likely to continue to hamper US economic growth in the second half of the year, according to the assessment.

Source: https://baoquocte.vn/kinh-te-my-hoat-dong-o-toc-do-thap-trong-nua-dau-nam-2024-276782.html