The US fought back yesterday with the release of two pieces of bullish high tier data. The economy grew more than previously estimated in the second quarter with bigger gains in consumer and business spending that show the US expansion is back on track. US second reading GDP posted a better than expected 3.7%, its best this year.
Also across the pond, we had the release of the weekly jobless claims figure. The reading declined to a three week low, indicating persistent demand is encouraging employers, bolstering the stronger Dollar of yesterday. Jobless claims exceeded economists’ consensus and registered a reading of 271k. Unemployment continues to fall and is convincing managers to increase hiring to keep consistent with sales.
Finally, Friday sees the second and final day of the Jackson Hole Conference. We also have the second reading of the UK’s GDP for Q2, expected to remain at 0.7% and German CPI forecast to decline to -0.1% as lagging inflation in the Eurozone continues.