US economic growth picks up

There was good news for the US economy on Thursday as predicted GDP for the second quarter this year increased at an annual rate of 2.3 percent.

The “advance” estimate from the Bureau of Economic Analysis also revised the first quarter figure from a slight decrease to a slight increase of 0.6 percent.

The Bureau said the increase in the second quarter reflected positive contributions from personal
consumption, exports, state and local government spending, and residential fixed investment

The Federal Reserve statement from Wednesday backs up the positive outlook, stating that the US economy and job market are continuing to strengthen.

The development allows for the possibility on an interest rate rise when central bank policymakers next meet in September.

The Fed’s latest statement noted that the economy had overcome a first quarter slow down and was “expanding moderately”.

After the Fed statement US stocks rose and the dollar was stronger against a basket of currencies.