The US has hit an annualised growth rate of 2.6 per cent in Q2 despite Donald Trump’s failure to secure fiscal policy wins since his inauguration in January.
The second quarter figures represent a significant acceleration in growth compared to Q1 when the US was second only to the UK as the slowest growing G7 economy.
Spain and Sweden have delivered stronger quarterly results of 0.9 per cent and 1.7 per cent respectively. France has posted GDP growth of 0.5 per cent for the quarter.
In contrast, the UK delivered GDP growth of 0.3 per cent earlier this week.
Commenting on the US figures, Close Brothers Asset Management CIO Nancy Curtin says the weak dollar buoyed strong performance in the export and industrial sectors, but the figures are still some way from Donald Trump’s target of 3 per cent.
“The US economy has improved following a slow start to the year, in spite of a lack of fiscal stimulus so far from Trump’s presidency,” Curtin says.
The senate’s vote against repeal of the Affordable Care Act in the early hours of this morning is the latest knock back for the White House.
Curtin says: “Despite improving growth, wage inflation remains somewhat elusive, but the labour market remains reasonably strong, and we anticipate the Fed will proceed as planned with its slow and steady programme of interest rate normalisation.”