US GDP left unchanged but stocks fall with oil

Economic activity in the US was left unchanged today in the first revision of the second quarter number but despite this unexpectedly upbeat revelation shares fell, as oil stocks weighed amid sliding crude prices.

Gross Domestic Product (GDP) in the country declined by 1% in the second quarter, unchanged from the initial reading last month, and ahead of economists forecasts. There were expectations prior to the release of the data that GDP would actually decline by 1.5%.

Other data was also broadly positive, although not quite as good as expected. US unemployment figures showing new claims made dipped in the last week to 570,000 from a revised 580,000, although this did not quite measure up to predictions of a fall to 565,000.

However, shares in the US were down just ahead of the close in the UK, with the Dow down 56.63 points at 9,487.14, and the S&P 500 weaker by 10.01 points at 1,018.11.

They were hit by falls in the price of oil in the US, which dipped below $70, weighing on oil shares. Oil fell back after hitting 10-month highs earlier in the week.

In the UK shares also closed weaker, with the FTSE 100 down 21.23 points at 4,869.35, and the FTSE 250 also weaker by 81.88 points, at 8,701.33