HOUSTON, July 3, 2019 /PRNewswire/ -- According to the
latest Economic Outlook published this week by BBVA Research,
GDP growth has decelerated in 2Q2019, but a rebound in consumption
should support moderate growth rates in 2H2019. Survey-based
investment indicators are also declining amidst deteriorating
business expectations. In addition, countervailing trade dynamics
-- weaker global growth versus reduced trade tensions -- imply
there will be no material change in the net export
balance.
The unemployment rate held steady at 3.6 percent in May, and the
labor force participation rate and unemployment-population ratio
also remained unchanged at 62.8 percent and 60.6 percent
respectively. The team anticipates job growth to continue with
modest declines in the unemployment rate for the remainder of 2019.
Average monthly job growth is expected to slow to 166,000 this
year, down from 223,000 in 2018.
According to the report, the Fed is expected to cut rates in the
third quarter 2019. This is based on elevated policy uncertainty,
renewed cross-currents, and the threat of inflation drifting below
the Fed's two percent target.
Headline consumer prices increased 0.1 percent month-over-month
in May, after rising 0.3 percent in April. The 12-month change in
the headline consumer price index (CPI) slumped below 2 percent
again to 1.8 percent, while the core CPI continued to decelerate,
reaching 2.0 percent in May. In addition to the slowdown in
energy prices, used cars and trucks, and motor vehicle insurance
prices decelerated, dragging down headline CPI.
The June Economic Outlook, authored by BBVA Research Senior
Economist Boyd Nash-Stacey, also
features a view of the labor market, interest rates, oil prices,
and inflation for 2019. For more details, read the full
report here.
Learn more about BBVA Research here and BBVA USA here.
For more BBVA news visit, www.bbva.com and the U.S.
Newsroom.
Additional news updates can be found via Twitter and
Instagram.
For more financial information about BBVA in the U.S., visit
bbva.investorroom.com.
About BBVA
BBVA Group
BBVA (NYSE: BBVA) is a customer-centric global financial services
group founded in 1857. The Group has a strong leadership position
in the Spanish market and is the largest financial institution in
Mexico. It has leading franchises
in South America and the Sunbelt
Region of the United States. It is
also the leading shareholder in Turkey's BBVA Garanti. BBVA's purpose is to
bring the age of opportunities to everyone, based on our customers'
real needs: provide the best solutions, helping them make the best
financial decisions, through an easy and convenient experience. The
institution rests in solid values: Customer comes first, we think
big and we are one team. BBVA's responsible banking model aspires
to achieve a more inclusive and sustainable society.
BBVA USA
In the U.S., BBVA is a Sunbelt-based financial institution that
operates 641 branches, including 329 in Texas, 89
in Alabama, 63 in Arizona, 61 in California, 45
in Florida, 37 in Colorado and 17 in New
Mexico. The bank ranks among the top 25 largest U.S. commercial
banks based on deposit market share and ranks among the largest
banks in Alabama (2nd), Texas (4th)
and Arizona (6th). In the U.S., BBVA has been recognized
as one of the leading small business lenders by the Small Business
Administration (SBA) and ranked 8th nationally in terms of dollar
volume of SBA loans originated in fiscal year 2018.
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SOURCE BBVA Research