China's GDP Miss, UPS Strike Threat And Insights From 9M Bank Accounts: Economic Highlights This Week

This week in economics was marked by China’s Q2 GDP miss, the looming final Fed rate hike, a potential false alarm in job market indicators, the potential ripple effects of a UPS strike, and insights from data of 9 million bank accounts. Let’s dive into the details.

China’s Q2 GDP Miss Stirs Unease
China’s Q2 GDP growth fell short of expectations, leading to concerns about the country’s economic recovery. Despite the growth rate of 6.3% year-over-year, it trailed the estimated 7.3% increase. The miss has led to a call for policy support on the demand side, with economists suggesting further rate cuts. The slower growth could impact tech names such as Alibaba Group Holding Limited BABA and JD.com, Inc. JD, as well as new energy vehicle manufacturers like BYD Company Limited BYDDY. Read the full article here.

Final Fed Rate Hike Looms
According to Goldman Sachs, the upcoming rate hike at the Federal Reserve's July meeting is likely to be the last of the current cycle. However, the bank also believes that rate cuts are not on the horizon anytime soon, projecting that the first rate cut could potentially happen only in the second quarter of 2024. Read the full article here.

Job Market Indicator’s Warning Could Be a False Alarm
While the average number of hours worked by people has often preceded recessions, some economists are cautiously optimistic about the economy's resilience this time around. They attribute the unusual post-pandemic factors in the private sector as a potential reason for the change. Read the full article here.

UPS Strike Could Impact Inflation, Supply Chains
A potential strike by the International Brotherhood of Teamsters at United Parcel Service Inc. UPS could have serious consequences for the logistics industry, contribute to inflationary pressures, and impact the stock market and interest rates. Read the full article here.

Insights from 9 Million Bank Accounts
A new report issued by JP Morgan Chase reveals that the median American now has more money in the bank than before the pandemic struck, even when adjusting for inflation. However, account balances are at their lowest point in over three years, with a steady decrease across income groups that appear to be returning to pre-pandemic levels. Read the full article here.

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