Capital Markets: Observations & Insights

Better to Be Behind? ​ Fundamentals

• The output gap measures economic output relative to potential, with a lower output gap indicating more growth left in the cycle • While most major regions are at or near potential output, some, such as Europe, are further behind the U.S.

U.S. Output Gap

Source: FactSet and Oxford Economics as of 3/31/19. Shaded regions indicate U.S. recessions.

Page 18

Made with FlippingBook - Online catalogs