April 10 (Reuters) – The U.S. economic system is vulnerable to shrinking within the second quarter, BofA International Analysis wrote in a shopper observe, following current financial information that hinted that the Federal Reserve’s aggressive rate of interest hikes had been cooling the economic system.
“This week’s information movement is in step with our view that the U.S. economic system slowed steadily over the course of 1Q 2023,” BofA economists wrote in a observe dated Friday and emailed Monday. “Because of this, the hand-off to 2Q appears weak. We see significant dangers of a contraction in GDP in 2Q.”
BofA pointed to information from April 3 displaying U.S. manufacturing exercise slumped in March to the bottom degree in almost three years as new orders plunged.
Reporting by Reuters markets workforce; Enhancing by Mark Porter
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