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31 Jul 2014
US economy posted strong GDP in Q2 - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underlined the solid data from US GDP in the second quarter.
Key Quotes
"The report revealed that the US economy rebounded more strongly than expected after the sharp contraction in Q1 providing further reassurance that it was only a temporary slowdown. Real GDP expanded by a robust annualized rate of 4.0% in Q2 which was boosted by a large inventory build adding 1.66 percentage points."
"The underlying pace of growth firmed with personal consumption growth accelerating to an annualized rate of 2.5% and capital investment expanding by an annualized rate of 7.0%. There were also upward revisions to growth in the previous three quarters revealing that economic growth was stronger over the past year."
"As a result of the revisions and despite the temporary economic contraction in Q1, real GDP expanded on average by annual rate of 2.4% over the last twelve months accelerating from an expansion of 2.0% in the previous twelve months. The report reinforces our view that the US dollar will likely continue to strengthen in the year ahead alongside the strengthening US economy. The release yesterday of the latest ADP survey also revealed that employment growth likely remained robust in July remaining consistent with non-farm employment increasing in line with its’ average over the last six months of around 230kjobs/month."
Key Quotes
"The report revealed that the US economy rebounded more strongly than expected after the sharp contraction in Q1 providing further reassurance that it was only a temporary slowdown. Real GDP expanded by a robust annualized rate of 4.0% in Q2 which was boosted by a large inventory build adding 1.66 percentage points."
"The underlying pace of growth firmed with personal consumption growth accelerating to an annualized rate of 2.5% and capital investment expanding by an annualized rate of 7.0%. There were also upward revisions to growth in the previous three quarters revealing that economic growth was stronger over the past year."
"As a result of the revisions and despite the temporary economic contraction in Q1, real GDP expanded on average by annual rate of 2.4% over the last twelve months accelerating from an expansion of 2.0% in the previous twelve months. The report reinforces our view that the US dollar will likely continue to strengthen in the year ahead alongside the strengthening US economy. The release yesterday of the latest ADP survey also revealed that employment growth likely remained robust in July remaining consistent with non-farm employment increasing in line with its’ average over the last six months of around 230kjobs/month."