The US economy expanded at a faster clip in the final quarter of 2017 than initially thought, data on Wednesday showed as consumer spending increased more than previously estimated. Real GDP increased at an annualised rate of 2.9 per cent in the last three months of last year, the third and final reading from the US Commerce Department showed. That compares to the first two readings of 2.6 per cent and 2.5 per cent and topped analysts’ forecasts for growth of 2.7 per cent. While the Fed’s median projection for the end of this year remained three rate rises, the number of governors expecting four hikes rose to equal the number expecting three. This means four rate hikes this year are now far more likely than they were in the last meeting under Janet Yellen in December.

Source: The Irish Times March 28, 2018 13:52 UTC