Morning Economic Report 5-19-25

Economy update

A plethora of negative economic data over the weekend and this morning has led to the souring of investors’ sentiment and to an elevated level of anxiety about economic growth. Rising government debt and budget deficit precipitated US downgrade, something that the White House dismissed. Chinese retail sales came in under expectations. The European Commission cut its growth forecasts to 0.9% for 2025, down from the previous estimate of 1.3%. European shares are on the retreat, so is the dollar whilst gold is up again.