The U.K. economy has slowed in the second quarter and is expected to slow further this year.
Economists at Morgan Stanley said Thursday that GDP growth for the third quarter was expected to be 1.9%.
The report came a day after the Trump administration announced it was withdrawing the U.N. sanctions against Russia over its annexation of Crimea and the war in eastern Ukraine.
The report came as the U.”s.
S., economies remains uncertain, the data suggest the economy is regaining momentum,” said Robert Pindyak, chief economist at Morgan. “
While the overall outlook for the U, and U..
S., economies remains uncertain, the data suggest the economy is regaining momentum,” said Robert Pindyak, chief economist at Morgan.
In addition, the U S. unemployment rate fell to 5.3% in March from 6.6% in February.
Meanwhile, the GDP grew by 2% in the third and fourth quarters.
As of March, U. S. employers added more than 11 million jobs, or 3.2% of the total, and the unemployment rate dropped to 5% from 6% in a weaker than expected second quarter.
On the consumer side, the pace of consumer spending has slowed since last fall.
Despite the lackluster pace of the economy, U-S.
consumer confidence rose to its highest level in four years in the fourth quarter, a sign of confidence in the economic recovery, said Morgan Stanley.
Pending regulatory relief for financial institutions, consumer spending rose 0.4% in April, the biggest increase since October 2016, according to the report.
A strong economic recovery is also encouraging businesses to expand and hire.
With inflation and unemployment below the Fed’s 2% goal, business spending has increased 1.2%, the biggest rate increase since November 2016, Morgan Stanley noted.
Job creation accelerated in March, reaching a 17-month high, the bank said.
However, a weaker dollar is hurting the economy in the U .
S. and could slow the pace at which job growth accelerates, the report said.
The U.s. dollar has gained 25% against a basket of currencies since the start of the year.
It has also weakened against the yen, euro and the pound, Morgan said.