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macroJun 5, 2026, 5:12 AM

US Leading Indicators Hold Up Despite Early 2026 Growth Slowdown

US nominal growth is heating up as leading indicators beat expectations, even as economic growth cooled at the start of 2026. Improving labor market conditions and solid investment demand are providing support.

US nominal growth is showing renewed momentum even though the economy cooled in early 2026. According to recent data, leading indicators have held up better than anticipated, supported by improving labour market conditions and still-solid investment demand.

This strength comes despite the ongoing war in Iran, which had raised fears of a sharper downturn. The resilience of leading indicators suggests that the underlying economy retains some heat, even as headline growth figures have softened.

Market participants will be watching for further signs of inflationary pressure as nominal growth accelerates, which could influence Federal Reserve policy decisions later this year.

Source: FXStreet Forex News