Fragile economy faces some risks but is still growing despite turmoil

Since the beginning of the year, one of the key questions asked by investors around the world has be...

Since the beginning of the year, one of the key questions asked by investors around the world has been whether the United States will enter a recession, and what the economic backdrop might mean for equities. Our overall view is that while the data continues to point to a fragile US economy that is facing some downside risks, it is nonetheless still growing. The housing market remains a source of significant weakness, with housing starts, building permits and new and existing home sales all declining in recent readings. Consumer confidence also has continued to weaken and the labour marke...