In February, the US economy grew more slowly than at the end of 2024, despite the recovery in the manufacturing sector. The eurozone continued to stagnate. The US labor market remains tight, with employment growth weaker than expected. In China, real estate prices continued to fall, deflation persisted and youth unemployment remained high.
The inflation rate in the USA and the eurozone rose slightly less than expected. In addition to the service sector, food prices contributed to the ongoing inflationary pressure.
Since the beginning of March, Fed rate cuts of almost 75 basis points have been priced in until the end of the year. In the eurozone, interest rate cuts of 50 basis points are anticipated, mainly in the first half of the year.