US GDP revised up, but it’s still the slowest growth in a year
Growth in the US economy has been revised up on the back of strong export and investment numbers.
The world's biggest economy grew by 1.1 per cent on an annualised basis in the first quarter of the year – up from the most recent estimate of 0.8 per cent and more than double the very first prediction.
However, this was still the slowest expansion in the economy for one year, and continued the trend of weak first quarter growth which has marked the US economy in recent years.
Business investment in areas such as software and research and development was also higher than initially thought, though still down on the final quarter of 2015.
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Higher growth would, in normal circumstances, have put the spotlight back on the US Federal Reserve over the timing of the next increase to interest rates. However, following the UK's vote to leave the EU, markets now only place a 7.7 per cent chance on interest rates being raised before the end of the year. By comparison, there is a 22.7 per cent chance of a cut during the Fed's September or November meeting.
Alasdair Cavalla, senior economist at the Centre for Economics and Business Research (CEBR), said: "Yellen’s price and employment mandate is now more likely to make a cut in rates her next move. Prices had shown consistent rises until recently, but the dollar’s appreciation will keep inflation down along with growth."