Posted 11/27/2023, 5:04:22 PM
Half of US States See Economic Slowdown But Major Economies Still Growing; Markets Remain Upbeat About Outlook
- Half of US states (27) showed economic contraction in the 3 months to October, up from 16 in the prior period, per Philadelphia Fed data
- However, 7 of the 10 largest state economies by GDP still saw growth, which may keep the overall US out of recession
- Markets remain upbeat about economic outlook despite apparent slowing, with stocks rallying and bonds signaling confidence
- High-yield bond spreads over Treasurys narrowing implies bond investors see positive economic outlook
- Unlike stocks, bonds have held a consistently confident economic view over last 6 months