New Delhi: The US economy on Thursday reported Q2 GDP growth of 3 per cent, outpacing Wall Street expectations. The US Bureau of Economic Analysis released its third Q2 GDP estimate, which was higher than analysts’ estimates of 2.9 per cent growth in the second quarter.
In another positive development, the US Labor Department shared a lower-than-expected rise in joblessness claims at 218,000 compared to expectations of 223,000 in the week of September 21, 2024. This was the lowest unemployment claims figure reported by the government since May 2024.
What higher US GDP means for global growth
According to professor Julio Coronado of the University of Texas Ustin, higher US GDP growth at 3 per cent coupled with a cooldown in inflation and the broader labour markets indicates “stronger potential US GDP growth”. This reflects improved productivity trends and stronger growth in population via immigration, she added.
With Gross Domestic Income revised up to match 3.0% GDP & coming alongside cooling inflation and labor markets we really are looking at stronger potential US GDP growth reflecting both better productivity trends + stronger population growth from immigration💪🇺🇸 pic.twitter.com/ktTOWhzeYY
— Julia Coronado (@jc_econ) September 26, 2024
US Federal Reserve board member Adrian D Kugler stated earlier in an address at the Harvard Kennedy School that inflation has “broadly moderated” with an improvement in the supply of goods and services. Tighter monetary policy has moderated demand, she said. Despite the labour market cooldown the US economy has expanded at a solid pace, she added.
US indices surge on positive GDP growth
US indices jumped after the US Q2 GDP figures were released and the weekly jobless claims data came in lower than expected. Dow Jones surged 0.44 per cent, and S&P 500 jumped 0.23 per cent on Thursday. The Nasdaq Composite dominated by tech stocks surged 0.20 per cent.
US IT bellwether, Accenture’s share price surged 4.31 per cent to $351.77 apiece after the company revised it FY25 guidance upwards while reported a 24 per cent rise in FY24 earnings per share to $2.66, outperforming Wall Street expectations.
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