THE US economy’s bounce back from polar conditions early this year was even stronger than statisticians initially expected.
GDP jumped by 4.2 per cent on an annualised basis during the second quarter, a larger increase than the four per cent which was initially projected.
Business investment was revised upwards significantly, with an 8.2 per cent expansion recorded, the fastest in two years.
“These figures confirm the strength of the US economy, and judging by recent figures, it is not going to run out of momentum any time soon,” said Nancy Curtin of Close Brothers Asset Management.
“Confidence is at a seven-year high, home construction data has bounced back and manufacturing figures continue to exceed expectations. While sluggish wage growth remains a key consideration for the [US] Fed[eral Reserve], the employment figures continue to show the strength of the labour market.”
Figures yesterday showed 298,000 initial applications for unemployment benefits in the week to 22 August, the third week in the past four in which a figure of below 300,000 has been recorded.