US | Recovery Tracker ends May firing on all cylinders
Our US Recovery Tracker finished May on a high note, rising 1.5ppts to 94.6 in the week ended May 28. A Memorial Day boost to demand, looser financial conditions, better health conditions, more robust production, and stronger employment lifted the tracker to a new recovery peak.
What you will learn:
- Five of the tracker’s six dimensions rose in the final week of May.
- Regional recoveries maintained an encouraging trajectory through the final week of May, according to our State Recovery Trackers (SRTs).
- All regions except the East registered higher SRT readings, with the Southwest and Mountains recording the strongest advance.
Finland’s growth forecast cut amid weak confidence and soaring inflation
We have lowered our 2022 GDP growth forecast for Finland to 1.5% from 1.7% last month, as weakening confidence further dampens the outlook. We expect inflation to peak higher with a greater passthrough to core prices, squeezing real incomes and denting consumption. Russia has accounted for almost 10% of Finland's goods trade, among the highest in Europe.Find Out More
Why we see eurozone inflation slowing sharply next year
We have revised our 2022 eurozone inflation forecasts sharply higher, to 6.0%, since the start of the Ukraine war, as energy and food prices began to soar and new supply bottlenecks emerged. That said, we still see inflation decelerating sharply to 1.3% in 2023, putting us below consensus. While we recognise significant risks to our views, inflation should slow to below 2% in H2 2023.Find Out More