UBS Forecasts ‘No Landing’ Scenario for US Economy: Implications for Markets and Inflation
UBS forecasts a “no landing” scenario for the U.S. economy, where growth continues alongside stable inflation, challenging recession predictions.
In their recent report, UBS highlights strong labor market data, with nonfarm payrolls exceeding expectations, and a robust GDP growth average of 2.5% since 2019. While industrial production dipped due to strikes and natural disasters, retail sales rose 0.4%, indicating solid household finances.
UBS expects inflation to align with the Federal Reserve’s target, allowing for potential rate cuts, despite anticipated market volatility ahead of the presidential election. Overall, UBS believes the economic momentum, combined with supportive trends like AI, will sustain equity growth.
Clever Robot News Desk 21th October 2024