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2 Aug 2013
Flash: US growth steadfastly continues – NAB
FXstreet.com (New York) - The June quarter accounts do not change our view of the direction of the economy US economy, notes the NAB Research Team.
Key quotes
“While growth in the quarter was stronger than expected and growth has accelerated over the last two quarters, this is balanced out by downward revisions to growth in previous quarters. Moreover, the stronger than expected growth was in-part due to inventories, essentially bringing forward growth from later in the year.”
“In the second half of 2013 we expect that the impact of the tax increases will begin to fade. Consumption will also be supported by the continued growth in household wealth and employment and the gradual easing in lending standards by banks.”
“This latter factor will also aid business investment, which is being underpinned by high corporate profits. The rapid growth in housing construction is also expected to continue, due to low inventory and continued employment growth, which will support household formation.”
Key quotes
“While growth in the quarter was stronger than expected and growth has accelerated over the last two quarters, this is balanced out by downward revisions to growth in previous quarters. Moreover, the stronger than expected growth was in-part due to inventories, essentially bringing forward growth from later in the year.”
“In the second half of 2013 we expect that the impact of the tax increases will begin to fade. Consumption will also be supported by the continued growth in household wealth and employment and the gradual easing in lending standards by banks.”
“This latter factor will also aid business investment, which is being underpinned by high corporate profits. The rapid growth in housing construction is also expected to continue, due to low inventory and continued employment growth, which will support household formation.”