Real gross domestic product (GDP) for the U.S. increased at an annual rate of 3.2% in the first quarter (Q1) of 2019, according to the advance estimate released by the Bureau of Economic Analysis (BEA).
The IMF reckons that global economic activity slowed notably in the second half of 2018. According to the IMF, the escalation of US–China trade tensions, credit tightening in China, macroeconomic stress in Argentina and Turkey, disruptions to the auto sector in Germany, and financial tightening alongside the normalization of monetary policy in the larger advanced economies have all contributed to a significantly weakened global expansion.
The U.S. fiscal deficit hit an annualized $1.06 trillion in 2018 but relatively speaking it isn’t that bad. The fiscal deficit had hit $1.5 trillion in 2009 in the aftermath of the financial crisis and the current level is the most since 2012.
Think the global economy is slowing? The equity markets don’t think so. The S&P 500 rose 13.1% in Quarter 1 (January to March), the largest quarterly gain since 2009 and the best start to a year since 1998.
The technology heavy NASDAQ index gained 17% as the S & P technology sector gained 19.3% during the quarter. Apple and Microsoft both gained over 16% during the quarter.
With interest rate rises on hold and signs of a slowing global economy, there have been a lot of noises that house prices globally are falling. We look at how U.S. house prices are looking compared to a year ago.