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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- The slow return towards pre-pandemic levels of the current account deficit (noted in part 1) have come partly as a result of continued loose fiscal policy.
- On a net lending basis from BEA data, government net borrowing stood at more than 8% GDP in Q2, requiring both elevated net lending balances with the rest of world (showing up as a current account deficit) as well as the private sector.
- The household sector tends to be a sizeable net lender and indeed has been running historically low levels of savings as it burns through accumulated ‘excess savings’ built up during the pandemic.
- Businesses however have been making up the slack recently, with an increasingly large net lending position as opposed to their more typical small net borrowing which helps fund investment. This relative saving could act as a drag on growth moving ahead.
- [Note the govt position in the chart below is for 2Q23 but other sectors are only for 1Q23].
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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