The US economy may grow at its strongest pace in almost four years in the second half of this year, according to a new survey. GDP, the broadest measure of economic growth is expected to expand at an annualised rate of 4.7pc during the current quarter and 4.0pc in the fourth quarter, according to a monthly survey of 53 economists conducted by The Wall Street Journal. That would mark a sharp pick-up from the 3.1pc growth recorded in the second quarter and 1.4pc in the first three months of the year.
The economists say there is mounting evidence that consumer and business spending has accelerated, pointing to higher sales for new cars and light trucks, improved business at the nation's top retailers and rising orders for durable goods. But a number of analysts believe the optimism surrounding the US is overdone because the rise in unemployment may result in slower consumer spending, which accounts for around two thirds of the economy. The pessimists also say that at least half of the growth in the second quarter was caused by war related spending, while the consumer element was temporarily boosted by the lowest US interest rates in 50 years and tax rebates. //www.fxcentre.com