U.S. GDP Surprises to the Upside
August 28, 2008
According to the U.S. Commerce Department, gross domestic product increased at a quarter on quarter annualised pace of 3.3%, well above initial estimates of 1.9%. The boost in GDP was attributed to an increase in exports driven by a weak U.S. dollar. However, many analysts believe expansion is likely to slow in the second half as consumer spending is threatened by falling home values and deteriorating job prospects. Despite the strong showing from GDP, the U.S. dollar declined against a basket of currencies as traders focused on the dreary outlook for growth in coming quarters.