US economic growth for second quarter is revised up
US economic growth for Q2 2024 has been revised up to an annualized 3% from 2.8%, highlighting the economy’s resilience despite high interest rates.
Euro falls as German and Spanish inflation data miss expectations
US GDP growth revised up to 3% for Q2 2024
Initial jobless claims in the US fall to 231,000
The euro saw a notable decline during the European trading session today, as inflation figures from Germany and Spain came in well below market expectations. The sharp slowdown in inflation intensifies speculation about a potential rate cut by the European Central Bank (ECB) in September. With price pressures easing more rapidly than anticipated, market participants are increasingly betting that the ECB might have room to execute two further rate cuts this year, amounting to a total of 100 basis points. Such moves would aim to provide much-needed stimulus to major Eurozone economies, including Germany and France, which are showing signs of strain.
US GDP growth revised upwards
In the United States, the economy grew at an annualized rate of 3% in the second quarter of 2024, a revision upward from the initial estimate of 2.8%. This marks a significant acceleration from the 1.4% growth rate recorded in the first quarter. The stronger-than-expected GDP data reinforces the view that the US economy remains resilient despite the Federal Reserve's high interest rates, even as there are signs of a gradual softening in the labor market. The solid growth figures provide the Fed with some leeway to maintain its focus on combating inflation without needing to shift its stance towards economic support prematurely.
US initial jobless claims dip below expectations
In the labor market, initial jobless claims in the US dropped by 2,000 to 231,000 for the week ending August 24, coming in slightly below analysts' expectations of 234,000. The four-week moving average of initial claims, a more stable measure of labor market trends, also decreased by 5,000 to 232,000. These figures suggest that the US job market remains relatively stable, despite broader economic concerns and high interest rates.