US Economy Surprises with 1.7 Percent Growth in Q2

The US economy grew at an annualised pace of 1.7% in the second quarter of the year, the Commerce Department has said.

That was a faster pace than expected by economists.

It was also up from the growth rate for the first three months of 2013, which was revised lower to 1.1% from 1.8%.

A slowdown was widely expected due to the impact of federal spending cuts, but also from the continuing weakness in the global economy.

In March, $85bn (£56bn) of public spending was cut as a result of a deal between Democrat and Republican politicians.

But the Commerce Department said that the federal government cut spending by only 1.5% in the April-to-June period, compared with a sharp drop of 8.4% in the first quarter.

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
Alfonso Esparza

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