RegionsNorth AmericaUS Economy Revives in Second Quarter

US Economy Revives in Second Quarter

US economic growth revived in the second quarter of 2014, expanding at an annual rate of 4% in the three months to the end of June according to the Commerce Department.

There was also better news on US gross domestic product (GDP) in the first quarter of the year. The figure for Q114 GDP originally showed a -2.9% contraction, reflecting the impact of a harsh winter, but the figure was revised down to -2.1%.

In its initial estimate for Q2, the government cited gains in personal consumption spending, exports and private inventory investment as the main contributors to growth. The 4% gain was ahead of many analysts’ forecasts, with general consensus that the figure would be nearer 3%.

The data was seen as confirming that the Q1 decrease in US output was likely a blip, due mostly to unusually severe winter weather in early 2014 as well as other anomalies.

Despite the improvement in the general economy, Q2 earnings for many US companies were mixed, while house prices are rising at the slowest pace in more than a year.

Many economists believe that a subdued US housing market and moderate earnings will persuade the Federal Reserve to hold off authorising any rise in US interest rates until well into 2015.

Related Articles

India-US trade corridor: Accelerating growth with reverse factoring

Deals & Markets India-US trade corridor: Accelerating growth with reverse factoring

5m Vinod Parmar
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

6m Victoria Beckett
Money market reforms: Navigating LVNAV, CNAV and VNAV

EEA Money market reforms: Navigating LVNAV, CNAV and VNAV

6m Victoria Beckett
Cash repatriation: The bar is now set

Cash Management Cash repatriation: The bar is now set

7m Bob Stark
New accounting standards may bring treasury losses: S&P interview

Accounting New accounting standards may bring treasury losses: S&P interview

9m Victoria Beckett
AFP interview: Treasurers prepare for US interest rate hike with synthetic euro debt

Economy AFP interview: Treasurers prepare for US interest rate hike with synthetic euro debt

9m Victoria Beckett
AFP Day 1: Rising interest rates and blockchain use cases

Banking AFP Day 1: Rising interest rates and blockchain use cases

10m Victoria Beckett
TreasuryXpress Receives Major Growth Investment

EEA TreasuryXpress Receives Major Growth Investment

10m Guest Writer