Third quarter figures show US economy remains resilient

Commenting on US GDP and the likelihood of further interest rate cuts, Rupert Thompson, Head of Research at Kingswood, said: “Third quarter US growth came in stronger than expected, slowing only fractionally to an annualised 1.9% pace from 2.0% in the second quarter. These numbers show the US economy remains fairly resilient with continued strength in consumer spending compensating for weakness in business investment. They also make it all the more likely that the Fed will cut rates a further 25bp later today but also signal a pause in its easing – while still making clear that it would cut rates again if the economy were to need it.”