US economic growth beats expectations

<p>Economic growth in the US has beaten the expectations of analysts.</p>

The latest data for the US economy has been released today (December 5th) and growth was in excess of the expectations of analysts.

Data revealed that the US economy expanded by 3.6 per cent during the third quarter of the year, which was up from the initial estimate of 2.8 per cent.

In the previous three-month period, the US economy's growth rate was 2.5 per cent, which indicates the pace of recovery in the US is speeding up.

The announcement from the Commerce Department revealed that a large rise in businesses restocking their inventories was among the factors involved in the unexpected jump.

It also stated that the annualised growth figure was therefore equivalent to a quarter-on-quarter increase of 0.9 per cent, which was up from 0.7 per cent in the previous estimates.

US jobs data is set to be released tomorrow and these are likely to have a big impact on major global markets around the world.

The Nikkei has slipped badly in the last two days as investors grow cautious over the figures.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.