Earlier today data releases proved that the UK economy contracted by less-than-expected in the second quarter. Now similar data from across the pond has shown that the US economy expanded by less-than-expected in the same period.
In the first quarter the US economy grew by 2 per cent but from April through June the world’s largest economy only expanded at a 1.3 per cent pace, 0.4 per cent less than averagely estimated by economists.
Today’s figures have demonstrated increasingly hesitant advances in consumer spending.
As asserted by Thomas Simons, an economist with Jefferies Group Inc, ‘Consumption is not good’. He went on to state; ‘Consumers are still driving GDP but only at a very modest pace.’
Drought inspired revised estimates for farm inventories similarly contributed to this bellow-par GDP reading.
In the last quarter of 2011 the World superpower grew at a 4 per cent pace which makes the last two quarters of deceleration even more marked.
On the upside, Labour Department figures showed that applications for jobless benefits fell to 359,000 in the week ending September 22nd. This 26,000 drop defied expectations and could be a sign that the labour market is slowly but surely recovering its strength.
However, given the persistent unemployment problems and curbed consumer/corporate spending the US economy is clearly finding it almost as difficult as other nations to maintain momentum during the global economic slowdown.
The Pound to Euro exchange rate is currently trading at 1.2602
The Pound to US Dollar exchange rate is currently trading at 1.6216
The Pound to Australian Dollar exchange rate is currently trading at 1.5569
The Euro to US Dollar exchange rate is currently trading at 1.2865
The Euro to Pound exchange rate is currently trading at 0.7934
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