US GDP contracted by an annual rate of 2.9% in the first quarter, official and final figures showed yesterday.
The U.S. economy contracted at a much steeper pace than previously estimated in the first quarter to record its worst performance in five years.
Economists had expected today's figure to come in at minus 1.7%. It was estimated the severe weather could have slashed as much as 1.5 percentage points from GDP growth in the first quarter.
The GDP figure was dragged down by weak demand for transportation, machinery, computers and electronic products; electrical equipment, appliances and components; as well as a 31.4 percent plunge in defence capital goods orders.
In more positive news the U.S. services sector expanded in June at the fastest pace in at least 4-1/2 years, pushed higher by increasing business activity, a survey showed yesterday. Financial data firm Markit said Purchasing Managers Index hit 61.2 in June, the highest reading since the survey began in October 2009, compared with May's final reading of 58.1.
We have bank of England governor mark Carney speaking at 10.30 to discuss the financial stability report that explores the stability and resilience of the UK financial sector. In the afternoon we have weekly jobless claims in the US expected to show further improvement.
10:30- GBP- UK Financial stability report
15:30- USD- US Initial jobless claims expected to fall from 312K to 310K
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