More signs of US resilience

Real retail sales continue to grow at above trend (dotted line below), showing little impact from higher interest rates.

Real Retail Sales

CSBS community bank survey shows a strong up-turn in business conditions in the second half of last year.

CSBS Financial Conditions Index

The latest Fed Beige Book report is also more upbeat:

The snow may cover the ground, but the signs from the Beige Book suggest the Federal Reserve districts are pretty happy with the economy and remain concerned about inflation. Textual analysis of today’s report showed a clear rise in focus on prices and a positive assessment of the US economy. On the basis of the apparent message from today’s report, expectations of rate cuts in H1 2024 may be wound back. ~ Meyrick Chapman


We no longer expect a recession before the November 2024 presidential elections.


Meyrick Chapman, Hedge Analytics Ltd: Beige Book – Inflation & Growth Rise Again