In recent weeks we have seen markets falling due largely to concerns about slowing growth in the U.S. in particular. In this Macro Focus Mads Koefoed, Macro Strategist, Saxo Bank takes a look at whether the degree of growth, or rather lack of it, and even subsequent talk about recession looming in the world's largest economy is overblown.

There’s no denying that the concerns about the U.S. economy slowing, which have been voiced of late by some, have been real but according to Mads the degree to which they have resulted in recent market declines is overrated and is more a reflection of other concerns in the Eurozone.
In a recent analysis of some 25 U.S. economic indicators he came to the conclusion that a serious deceleration in U.S. growth is not on the cards for the next four quarters. Growth will be subdued rather than robust i.e. around 2 percent, he says. Other indicators like employment growth, though limited at around 100-150,000 new payrolls a month being added to the economy plus steady increases in railroad freight carloads further support his arguments.

Stronger than expected industrial production and high capacity utilisation numbers for July seem to have confirmed his belief though the data is for just one month and only a steady flow and analysis of data can result in real conclusions being made, he says.

Meanwhile, German growth and in the Eurozone as a whole seem actually to warrant greater investor concern than for the U.S. as second quarter figures showed. Germany, is feeling the pain of slower Asian and neighbouring European country demand for its products, resulting in less exports than imports – a rare scenario for Europe's growth engine.