OECD Brings a Knife to the Table as Americans Shift to Eating More at Home

The OECD slashed their U.S. GDP growth forecast again…

Highlights

• The OECD slashed their U.S. GDP growth forecast again…

• …while the Atlanta Fed’s Q2 Nowcast jumped despite bad construction data

• Consumers continue to reduce discretionary spending

• Senators continue to push back on deficits in the House budget

Key Takeaways

• Another Key Index Enters Contraction Territory: The key datapoint that was released overnight but seemingly widely ignored was the Caixin manufacturing PMI index, which suffered its worst slump last month since September 2022 — tumbling to 48.3 in May from 50.4 in April and humiliating a consensus forecasting community calling for a 50.7 headline (new orders slumped to a two-year low as well).