9th July 2018
Key developments
In recent months we have highlighted how economies and markets seem at a crossroads. In June, there was further evidence of an upcoming moderation in domestic economic activity whilst cost pressures appear to be rising. Looking forward, this is a theme that remains near the top of our list of what to watch most closely on the horizon.
Looking back over June, while some macroeconomic data in Europe and Asia disappointed, economic activity in the US remained robust, with very solid non-farm payrolls numbers and manufacturing PMIs far into expansionary territory. This saw the US Federal Reserve stick to its plan of lifting the US Fed Funds Rate by 25 basis points to 1.75-2.00% and signalling more to come over the next couple of years.