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Impact of higher rates spreading beyond housing

Whether or not Q3 marked the start of a recession, the recent resilience of the economy appears to be fading as the drag from higher interest rates grows. The weakness in the housing market has significantly reduced residential investment, and there are signs that higher interest rates are gradually starting to weigh more heavily on consumer spending and business investment. We think they will both fall further and that the economy is going to be subdued for a while yet.  

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