Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

US economy smashes expectations with 1.7% Q2 growth

US economy smashes expectations with 1.7% Q2 growth

US GDP has risen sharply to 1.7%, beating economists' expectations.

America's real growth rate accelerated from 1.1% to 1.7% over the second quarter, reflecting a recovery that is gaining momentum, and a growth rate well above the 1% consensus had predicted.

Capital Economics said the figures will no doubt bolster the Federal Reserve's resolve to taper quantitative easing, particularly since officials revealed consumption had risen by 1.8%, down only slightly from a 2.3% gain during the first three months of the year.

'Together, those increases suggest that households have coped well with higher taxes,' Capital's Paul Ashworth, chief US economist, said, pointing out that changes to levies earlier this year were not squeezing consumers too hard.

Following the data, the UK's FTSE 100 was up 0.76% at 6,622, while across the Atlantic, the Dow Jones Industrial Average was positioning for a slight 0.15% fall.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Play Wealth managers reveal the best investment ideas of the year

Wealth managers reveal the best investment ideas of the year

From robotics to impact investing, wealth managers share the best ideas they have heard this year.

Play Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Baillie Gifford's Earnshaw on Xi Jinping's 'new era'

Sophie Earnshaw talks through what Xi Jinping's 'new era' means for investors. and why Chinese tech offers some of best growth stocks in the world.

Read More
Your Business: Cover Star Club

Profile: JM Finn on why the future is with financial planners

Profile: JM Finn on why the future is with financial planners

There is a lot of work on pension consolidation and Sipps have been a big driver there, says JM Finn chief executive

Wealth Manager on Twitter