Gross domestic product rose at an annual rate of 4pc in the second quarter of the year – far stronger than the 3pc expected by analysts. On a quarter-by-quarter basis, the economy grew by 1pc, outstripping the 0.8pc expansion seen in the
The US growth spurt followed an annualised slump of 2.1pc in the first three months of 2014. That was revised up from the 2.9pc drop previously reported.
The figures suggested that the US economy is in far better shape than feared and fuelled speculation that the Federal Reserve will start raising interest rates early next year.
'The economy is looking pretty darned good,' said
The Fed, America's central bank, trimmed its monthly bond-buying programme by another
Jobs figures published tomorrow in the crucial non-farm payrolls report will provide further clues to the health of the economy with analysts expecting, around 230,000 jobs to have been created in July.
An even bigger increase would fuel speculation that the Fed could raise interest rates in the US before the Bank of
But Fed chairman
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