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US economic growth expands faster than estimated

The much-anticipated recession clouds seem to be ever-elusive

29 June 2023

US GDP for the first quarter saw its final estimate upgraded 0.7% to show 2% growth at an annualised pace. This was against estimates of a 1.4% advance, so a strong beat and this follows on from the previous quarter’s 2.6% growth rate. A relatively strong US economy indeed with exports increasing more than expected and a resilient consumer consuming. With the accompanying better than expected unemployment data that dropped at the same time, there is no immediate sign that Federal Reserve policy should be anything but more restrictive still. The much-anticipated recession clouds seem to be ever-elusive and off the horizon in the US, much to many forecasters’ consternation.

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Charles Hepworth

Investment Director
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