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| Version 0 | Version 1 |
|---|---|
| US economy sees stronger growth | US economy sees stronger growth |
| (10 minutes later) | |
| The US economy grew faster than expected over the past three months, recording its best quarterly performance since early 2006. | The US economy grew faster than expected over the past three months, recording its best quarterly performance since early 2006. |
| The economy grew by 3.4% on an annual basis, bouncing back from a dismal first quarter where it grew just 0.6%. | The economy grew by 3.4% on an annual basis, bouncing back from a dismal first quarter where it grew just 0.6%. |
| The figures were keenly anticipated following signs that the slump in the housing market has been having a negative impact on the wider economy. | The figures were keenly anticipated following signs that the slump in the housing market has been having a negative impact on the wider economy. |
| The figure exceeded expectations by analysts who expected a 3.2% increase. | |
| And they may help steady stock markets which have fallen heavily in the past 24 hours on fears of a credit crunch spreading from the US housing market. | |
| Consumer weakness | |
| Nevertheless, the figure masked a further deterioration in consumer spending between April and June and continued weakness in the housing market. | |
| The rate in growth in consumer expenditure slowed to 1.3% from 4.2% earlier in the year, reflecting growing caution among households about the economic outlook. | |
| Investment in house building fell 9.3% on an annual basis, although the fall was less severe than the 15.8% decline seen in the first quarter. | |
| General economic activity was boosted by strength in business investment, government spending and rising exports. | |
| At the same time, core consumer prices - excluding food and energy - increased 1.4% over the period, their slowest quarterly rate of growth since 2003. |