US Economic Growth Revised up in Q2 2015
According to revised official figures, the US economy expanded more than previously estimated in Q2 2015.
The US Commerce Department said the economy expanded at an annualized pace of 3.9%, rather than 3.7%.
The overall US economic growth was due to strong consumer spending, business investment and residential construction.
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It rate is much higher than the 0.6% rate recorded in Q1 2015.
The growth rate is expected to have slowed in the current quarter, but in a speech on September 24 Federal Reserve head Janet Yellen said economic growth appeared “solid” and the US remained “on track” for an interest rate rise this year.
Janet Yellen said as long as inflation was stable and the US economy was strong enough to boost jobs, the conditions would be right for a rise.
US interest rates have been held at near-zero since the 2008 financial crisis. When they finally do rise, it will be the first interest rate increase in nine years.
Stocks on Wall Street made a bright start in the wake of the GDP figures and Janet Yellen’s comments, with the Dow Jones rising 1% in morning trade.