Global Economic Update 1st Quarter 2015
Overview
This commentary provides updated data on the state of the global economy in the First Quarter of 2015, including:
Recent economic data showed economic growth cooled in the first quarter impacted by a pull back in activity by energy companies, rough winter weather and a strong US dollar. The US economy expanded at a 2.2% annualized pace in the fourth quarter, led by the biggest gain in consumer spending in eight years. Consumer spending rose 4.4%, the most since 2006.
- Employers added 126,000 workers in March, the smallest monthly gain since December 2013. Still the unemployment rate held at 5.5%, the lowest level since May 2008. Employment gains for the prior two months were revised lower by 69,000.
Non-US
- The European Central Bank held its benchmark policy rate at 0.05% during its March policy meeting and reiterated that it is highly unlikely the purchases of bonds would be curtailed despite the economic rebound.
- Government stimulus at the end of 2014 coupled with strong retail sales helped China’s economy grow 7.4% in 2014, just shy of the government’s target of 7.5%. China’s effort to rebalance its economic structure toward a consumption based economy took shape as consumption contributed 51.2% of the GDP growth last year, up 3% from a year earlier, while services made up roughly 48%.