Markets are pricing in economic upturn

By Phil Roantree, manager of the Aberdeen Sterling Bond unit trust Bond markets are pricing in a...

By Phil Roantree, manager of the Aberdeen Sterling Bond unit trust Bond markets are pricing in an economic rebound. The US, in particular, has seen a marked swing in inventory investment, with Q1 GDP growing at an annualised rate above 5%. Still, the extent and sustainability of the recovery is uncertain, with the US authorities keen to see the follow-through to final demand, although continued weakness in the labour market puts that into question, and a recovery in business investment. With a subdued inflation outlook, it may be the third quarter before the US begins to rais...