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Sunday 14th of March 2010
September 30, 2009    

US economy growth figures revised upwards

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by Kay Murchie
US economy growth figures revised upwards

Hopes of an early exit from the recession today boosted the US after the Commerce Department revealed that the world’s no.1 economy shrank at a far slower rate in the second quarter than previous estimates showed.

According to the Commerce Department, the US economy contracted by 0.7% between the April and June period rather than the 1% previously reported and far better than the 1.2% expected by Wall Street.

The better than expected figures were due, in part, to improved consumer and business spending.

Pierre Ellis at Decision Economics in New York said: “It’s not an earth-shaking revision, but it does show a healthier picture than before because domestic spending is less weak.”

The news triggered a rise on the Dow Jones Industrial Average which gained 52 points at opening, while the FTSE 100 in London responded with a brief increase.

However, the news was somewhat overshadowed after it was revealed that the US private sector axed 254,000 jobs during September.

While, this was better than the 277,000 jobs lost during the previous month, it was worse than Wall Street’s prediction of 210,000 job losses.

In other news, the Conference Board revealed a fall in US consumer confidence.

The closely-monitored Consumer Confidence Index fell from a revised 54.5 in August to 53.1 in September - much lower than the reading of 57.0 expected on Wall Street.

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