Episode - 19 May 2023

Macro Pulse · May 19, 2023 · 3m

Financial markets were a little unsettled earlier this week but heightened optimism about the willingness of US politicians to raise the US debt ceiling has calmed some fears. Incoming economic data, however, have taken a turn for the worse and there is arguably now mounting evidence to suggest that tighter monetary policy is beginning to exact a heavier toll. Against this backdrop, our charts this week home in on:

· The US yield curve

· Private sector deleveraging

· China’s disappointing reopening phase

· Japan’s economy in Q1

· The UK labour market

· Inflation, profits and sales