German Unemployment Falls in October

The US economy grew at an annual rate of 3.5% in the July-September quarter, the Commerce Department has said.

That was better than the 3% pace that economists had been expecting and follows the 4.6% growth rate recorded in the April-June quarter.

Strong export growth and higher government spending helped to boost growth in the third quarter.

In a sign of confidence in the US recovery, on Wednesday the Federal Reserve ended its stimulus scheme.

The fall in the unemployment rate to a six-year low has helped to boost that confidence.

“Today’s number represents a return to a healthy-looking trend. The most recent IMF forecasts suggest the US economy will grow 3.1% next year and 3.0% in 2016, and these could be revised further upwards in the coming months,” said Ben Brettell, senior economist at Hargreaves Lansdown stockbrokers.

The report was the first of three estimates of gross domestic product, so the figure could be revised up or down, over the coming months.

Growth was lifted in the third quarter by a sharp increase in government spending, which itself was boosted by a surge in defence expenditure.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza