TD Securities projects that US GDP growth will slow to an annualized rate of 1.0% quarter-on-quarter in the second quarter, falling short of the 2.0% consensus forecast. This revised outlook reflects a moderation in economic momentum amid mixed contributing factors.
The forecast highlights that growth in the US economy during Q2 is expected to be supported primarily by a recovery in consumer spending and increased investment in artificial intelligence sectors. However, this positive impact is partly offset by weakness in net exports and inventory levels, which are anticipated to drag on overall growth.
For Japanese investors and markets, the slower US growth trajectory could influence risk sentiment and currency movements, particularly given the close trade and investment ties between Japan and the United States.