The economy in the U.S. expanded more than previously forecast in the second quarter, growing at an annual rate of 4.2%.Propelled by the biggest gain in business investment in more than two years which bodes well for the rest of 2014. .
More good news for the US was a report showing companies are buying more equipment as earnings and profits improve.The GDP report showed that pre-tax earnings rose 8% last quarter, the most since the third quarter of 2010, after a 9.4% drop in the prior period.
Yesterday the US Labour Department showed the number of people applying for unemployment benefits fell by 1,000 to 298,000 last week This is another good sign that employment conditions in the US are improving.
In Germany inflation figures for August remain unchanged at 0.8% from July. While Germany has some of the strongest inflation in the Eurozone it the figure is still well below the ECB’s target level of 2%.
There is continuing pressure on ECB president Mario Draghi to take further action such as quantitative easing to help stimulate the Eurozone. Germany’s unemployment rate also remained unchanged at 6.7% for the month of August.
10:00 – EUR - Eurozone Inflation (Aug) expected to fall from 0.4% to 0.3%
14:45 - USD - Chicago Purchasing Managers Index (Aug) expected to rise from 52.60 to 56
*All times shown are BST
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