Tags: Moodys | Zandi | Markets | Economy

Moody’s Zandi: June Data May Bring Clarity to Markets, Economy

Wednesday, 30 May 2012 07:51 AM EDT

Agonizing uncertainty plaguing markets will end in June, when key indicators will reveal where the economy is headed, says Mark Zandi, chief economist at Moody's Analytics.

Markets have roiled this year on indicators that often contradict each other or come in well above or below expectations, which suggests forecasters are unclear as to the direction of the U.S. and other economies.

Meanwhile, warm winter weather pumped up jobs numbers in January and February in the U.S. and brought construction jobs online earlier, making the economy seem healthier than it was.

Editor's Note: The Final Turning Predicted for America. See Proof.

That uncertainty ends in June.

"We’re going to get a lot of clarity on a lot of big issues. June jobs data (released in July) I think will provide insight into whether the slowdown is simply weather pay back or whether there's a fundamental downshift in the economy," Zandi tells CNBC, adding consumer demand is improving.

"Consumers are doing their part. They’re not leading the way, but they’re hanging in there and doing their part."

Consumer demand drives over 70 percent of total U.S. economic output.

Key Chinese manufacturing figures will come out in June, while Greece will go to the polls and elect a new parliament.

A strong showing by Greece's conservative political party New Democracy could signal Greeks favor sticking with the euro, which could calm markets and improve indicators as well.

The Paris-based Organization for Economic Cooperation and Development (OECD), a 34-member international economic organization, is predicting tepid growth in the U.S. and Japan but adds the fate of Europe remains in doubt.

"We see a slow rebound of growth in the United States driven mostly by private demand, some pick-up in Japan and moderate to strong growth in emerging economies," OECD chief economist Pier Carlo Padoan tells Reuters.

"We also see flat growth in the euro area which hides important differences, with northern countries growing and southern countries in recession," Padoan adds.

Editor's Note: The Final Turning Predicted for America. See Proof.

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Wednesday, 30 May 2012 07:51 AM
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