It seems that not even a Superstorm can keep America down for long.
Economists with Goldman Sachs Group Inc and Barclays Plc have estimated that the US economy will post its fastest quarterly growth for 2012 in the third quarter by recording a Gross Domestic Product annual rate increase of 2.9 per cent.
Recovery in the housing and job markets, as well as boosted consumer spending and confidence, have been cited as the reasons behind the impressive growth projection.
The Commerce Department has only forecast growth of 2 per cent, but the chief economist with New York-based Goldman Sachs predicted that expansion in the months from July to September would be upwardly revised to 2.8 per cent, whilst growth of 1.7 per cent could be expected in the fourth quarter. Jan Hatzius also commented that ‘the economy’s momentum has picked up a bit’ as a result of an ‘improving’ public sector.
Although industry experts have asserted that as much as 0.5 percentage point could be shed from fourth quarter US GDP as a result of the repercussions of Superstorm Sandy, the world’s largest economy could be stronger in the second half of 2013 than many had anticipated.
An asset allocator with ING Investment Management asserted: ‘The economy is somewhat stronger than people are giving it credit for’.
Meanwhile a rates strategy expert with Bank of America Merrill Lynch stated: ‘The fiscal cliff is being priced in because it’s the biggest risk facing the market right now.’ Priya Misra went on to say: ‘Without the [fiscal] cliff, we would grow 2 to 2.25 per cent next year’.
It is thought by some that American expansion could return to its standard level of 3 per cent growth within the next three or four years.
As of 11:50 am
The Pound to Euro exchange rate is currently trading at 1.2447
The Pound to US Dollar exchange rate is currently trading at 1.5905
The Pound to Australian Dollar exchange rate is currently trading at 1.5297
The Euro to US Dollar exchange rate is currently trading at 1.2773
The Euro to Pound exchange rate is currently trading at 0.8031