This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk/6919277.stm
The article has changed 6 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
US economy sees stronger growth | US economy sees stronger growth |
(40 minutes later) | |
The US economy grew faster than expected over the past three months, figures have shown, recording the 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 US housing market has been having a negative impact on the wider economy. | |
The figure exceeded expectations by analysts who expected a 3.2% increase. | The figure exceeded expectations by analysts who expected a 3.2% increase. |
And the data may help to steady stock markets which have fallen heavily in the past 24 hours on fears of a credit crunch spreading from the US housing sector. | |
Consumer weakness | Consumer weakness |
Nevertheless, the figure masked a further deterioration in consumer spending between April and June and continued weakness in the housing market. | Nevertheless, the figure masked a further deterioration in consumer spending between April and June and continued weakness in the housing market. |
The rate of 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. | 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. |
This report says the economy is OK Rudy Narvas, 4 Cast Limited | |
General economic activity was boosted by strength in business investment, government spending and rising exports. | 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 - rose by 1.4% over the period, their slowest quarterly rate of growth since 2003. | |
Analysts said the figures should give some reassurance to volatile equity markets. | |
"There are an awful lot of concerns out there about growth," said Rudy Narvas, a senior bond analyst from 4 Cast Limited. | |
"This report says the economy is OK." | |
The US Federal Reserve is anticipating somewhat stronger growth in the second half of 2007 but has still revised downwards its full-year growth forecast to between 2.25% and 2.5% after the slowdown earlier this year. | |
The Fed has kept interest rates on hold at 5.25% for several months as it balances concerns over the extent of the housing slump with signs that inflationary pressures may be easing. |