US GDP up by 3.7% in Q2
Gross domestic product, the value of all goods and services produced, rose at a 3.7 percent annualized rate. Analysts were forecasting 3.2% growth. American households, bolstered by gains in employment, rising home prices and cheaper fuel costs, will probably continue to spur the economy in the second half of the year. At the same time, a record surge in stockpiles represents another headwind for manufacturers already contending with a rising dollar and slumping emerging markets that have hurt exports.
Separate report showed that unemployment applications dropped by 6,000 to 271,000 in the week ended Aug. 22. The median forecast of economists called for 274,000 jobless claims. The four-week average of claims, a less-volatile measure than the weekly figure, rose to 272,500 from 271,500 in the prior week. Demand for skilled workers as the unemployment rate falls is convincing hiring managers to keep staffing levels consistent with sales. Pay raises, alongside strengthening job security, would help provide a bigger boost to consumer spending, which accounts for almost 70 percent of the economy.
After the data USD strengthen against its major rivals. Euro is currently being traded few points above 1.1250 level, Sterling is at 1.5420 area, while Aussie is at 0.7150 level.
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