Boost from lower rates starting to feed through

The sharp fall in market interest rates over the past 12 months is starting to support the economy, with activity growth in rate-sensitive sectors like durables consumption and housing rebounding in recent months. With income growth slowing and the manufacturing sector being hammered by weak global demand, this won’t prevent a further slowdown in economic growth, but it does make it a little more likely the economy can weather the trade war and avoid an outright recession.