Nomura economists warn of impending stagflation in the US, with Q1 2025 GDP contracting (~0.5 per cent), followed by a sharp slowdown in core private demand from +2.5 per cent to –1.0 per cent.
Despite May job gains, hefty revisions and layoffs signal weakening labour conditions.
Core inflation remains near 2 per cent, but firms plan to pass tariff costs onto consumers, risking inflation upticks.
