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Issuer of report: Disclosures & Disclaimer: This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it HSBC Securities (USA) Inc June 2016 Ryan Wang US Economist HSBC Securities (USA) Inc

Global industrial production 2 Source: Federal Reserve, Netherlands Bureau for Economic Policy Analysis In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum. HSBC is not taking a political position and this document and the information contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in the UK Referendum.

US: Composition of GDP growth, 2015 versus Source: Bureau of Economic Analysis

US: Weakness in business investment holding back growth 4 Source: Bureau of Economic Analysis

US: New orders for capital equipment in a downtrend 5 Source: US Census Bureau

US: Housing activity continues to expand 6 Source: US Census Bureau

US: Government spending starting to support growth 7 Source: Bureau of Economic Analysis

US: Net exports have been a drag 8 Source: Bureau of Economic Analysis

US: Employment gains slowed in April and May 9 Source: Bureau of Labor Statistics

US: Weather “payback” after mild winter? 10 Source: National Oceanic and Atmospheric Administration

US: Decline in Fed’s labor market conditions index 11 Source: Bureau of Labor Statistics

US: Inflation remains below the FOMC’s target 12 Source: Bureau of Economic Analysis

US: Oil production and oil prices 13 Source for both charts: Energy Information Administration, Bloomberg

US: Core services prices are rising; core goods prices are not 14 Source: Bureau of Labor Statistics

US: Rents continue to rise 15 Source: Bureau of Labor Statistics

US: Some workers starting to see modest wage increases 16 Source: Bureau of Labor Statistics

US: Unusually weak productivity growth in this expansion 17 Source: Bureau of Labor Statistics

18 Source: HSBC, Federal Reserve US: Projected path of FOMC rate hikes could be lowered in June

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