The Day at a Glance | June 29 2023

The Top

*US GDP for the 1Q23 was revised for a third time (2.0% quarterly annualized vs 1.3% prev.). 

*On Thursday, during a conference held at the Bank of Spain in Madrid, Federal Reserve Chair Jerome Powell pointed out that at least two more interest rate hikes may be necessary this year to bring inflation back to the 2% target level. He added that taking action in consecutive policy meetings is not “off the table”. 

*The number of unemployment insurance claims in the US fell to 239,000 in the week ending June 24th, down from the previous week´s 264,000 claims and below the expected 265,000. 

*According to CNN, the Kremlin is planning a series of events aimed at demonstrating the unity and solidarity of the Russian army and state towards President Vladimir Putin, reaffirming his authority following the insurrection by mercenaries from the Wagner Group. 

Economic environment

US GDP growth was significantly revised on Thursday. According to data regarding the figure´s third adjustment, the US economy grew 2.0% on a quarterly annualized basis, instead of the previously reported 1.3%, and exceeded the 1.4% expected by the consensus. This increase is due to increased revisions in exports (+7.8% from +5.2% prev.) and consumer spending (+4.2% from 3.8% prev.). Regarding the latter – GDP´s main growth driver – it logged its fastest growth rate since the 2Q21 due to the adjustment in spending on services. With this, the most recent GDP figures point towards greater resilience in the US economy than previously expected, and this is likely to lead to upward revisions in growth forecasts for the full year.