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Latest data points to slowing US economy

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3 months ago

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Latest data points to slowing US economy

US financial markets are anticipating one or more interest rate cuts this year. Photo: Luke Sharrett/Bloomberg

Lucia Mutikani and Lindsay Dunsmuir

First-time applications for US unemployment benefits fell moderately last week, while new housing construction dropped to the lowest level in nearly four years in May, suggesting that economic activity remained moderate in the second quarter.

The data released on Thursday combined with tepid retail sales last month to keep a September interest rate cut from the Federal Reserve on the table. Financial markets are anticipating one or more rate cuts this year despite policymakers’ more hawkish outlook. Momentum is ebbing under the weight of the higher borrowing costs engineered by the US central bank.

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