Friday, 6 December 2013

US growth revised up, Europe leaves monetary policies unchanged, Japan raises fiscal stimulus

A report on Thursday showed that the US economy grew significantly stronger than initially estimated in the third quarter. Gross domestic product rose at a 3.6 percent annual rate, up from an initial estimate of 2.8 percent and the strongest since the first quarter of 2012.

However, almost half of the increase in the growth rate came from an increase in the estimate of inventory accumulation, which could result in lower growth in the fourth quarter.

Also, another report on Thursday showed that US factory orders fell 0.9 percent in October after rising 1.8 percent in September.

In any case, US stocks fell on Thursday, the S&P 500 falling 0.4 percent.

European stocks also fell. The STOXX Europe 600 declined 0.9 percent as both the European Central Bank and the Bank of England left their monetary policies unchanged on Thursday.

Meanwhile, though, the Japanese government did approve a stimulus package worth 5.5 trillion yen on Thursday in a bid to offset the impact of a tax hike that comes into effect next year.

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