Economist insights: US unemployment falls again, the Fed is not worried about the risk of overheating, stable PMIs in China (p. 1)
› In the United States, despite the drop in the unemployment rate to 3.9% in April, its lowest level since December 2000, wage growth has remained contained at 2.6%, in line with our scenario
› The Federal Reserve opted for the monetary status quo, and indicated clearly that it intends to continue its monetary tightening at a gradual pace, as we anticipated
› In China, leading indicators published for April suggest a continued dynamic momentum in services
Focus India: Toward a strengthening of the credit cycle (p. 5)
› Alongside the recovery of economic growth in India, the rebound in banking credit growth is an encouraging factor following the past few years of decline
› The credit market nevertheless remains marked by pockets of vulnerability, as illustrated by the large amounts of non-performing loans and recent deficiencies in risk management
› Structural reforms, particularly the recapitalisation plan of public banks, should nevertheless strengthen the credit cycle over the coming quarters
Weekly Economic Insights - May 7th 2018 - US labor market, Fed, Chinese PMI and Credit in India
