Improvement in US Economy

The US economy grew at an annualised rate of 1.7% in Q2 2013

Compared to 1.1% in Q1

Companies increased inventory levels faster than expected

The Federal Reserve expects growth to pick up, the fiscal sequester notwithstanding

The US is changing the way it calculates GDP

GDP will now include intangibles like R & D spending and will be backdated to 1929

This method is meant to capture the shape of modern economies especially the service sector

Output will likely increase by as much as 3.6%

US house prices rose by 12% year-on-year for the 20 biggest cities according to the S&P/Case-Shiller Index

162,000 new jobs were added in the US in July and unemployment dropped to 7.4% from 7.6% in June

The millennial generation in the US consisting of those born between 1980 – 95 now number 80m or 22% of the population

They have $200bn of direct purchasing power, and $500bn of indirect spending by influencing their parents spending

Source of information: Financial Derivatives Company Limited

 

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