US investors ‘brace for stagnation’

<p>US investors may be bracing for news the economy stagnated in August.</p>

US investors may be preparing for news the world's largest economy stagnated in August 2012.

A survey of economists by Bloomberg has revealed many industry professionals believe Washington DC's drive to bring about growth are faltering and a report from the Commerce Department out on September 28th will prove this is the case.

According to a median estimate of 63 analysts surveyed by the news organisation, household purchases are expected to climb 0.5 per cent for last month, after a 0.4 per cent advance in July.

This kind of spending accounts for some 70 per cent of the US economy.

The government report is also expected to show incomes rose 0.2 per cent in August, after making gains of 0.3 per cent the previous month.

At the end of the week's trading on Friday, the Dow Jones Industrial Average slipped 0.1 per cent to 13579.4 points and the Nasdaq gained 0.1 per cent to 3179.9 points.

Learn all about CFD trading strategies and the Dow Jones at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.