Euler Hermes’ economists provide views and opinions on a variety of topics ranging from new global trade routes to emerging risks and opportunities. Our in-house experts analyze sectors, trends, regions and more to help companies grow their business confidently and strategically.
Through our worldwide economic research team, you can gain access to actionable economic intelligence, strategic forecasting, and market-specific risk analysis. Armed with this knowledge, you can confidently extend more credit to your customers and expand sales to new prospects.
EH Update: Current Economic Events
- The Fed left the overnight funds rate unchanged, but did make several amendments to its policy statement, removing all calendar references and returning to data dependence as a key to decision making. The statement said “economic activity will expand at a moderate pace” and went into some detail about the results of some “transitory factors” that put a drag on the economy; “economic growth slowed…job gains moderated…growth in household spending declined…investment softened… housing sector remained slow, and exports declined.”
- EH expects that the Fed raise interest rates in Q4-2015. First quarter GDP supported the Fed’s assessment, showing very weak growth of +0.2% q/q annualized, compared with expectations of +1%.
- Consumption growth declined to only +1.9%, from +4.4% in the previous quarter, net exports subtracted -1.3% and, after stripping out inventories, the economy actually contracted by -0.5%.
- EH expects the remainder of the year to show much stronger growth, with data in the coming months particularly important. Evidence of pent up demand and a shaking off of the dire winter will be vital in the coming weeks.
- Among other signs of weakness, consumer confidence in March fell -6.2 points (95.2), driven by expectations of labor market weakness.