The release of second quarter GDP figures this afternoon have shown that the US economy contracted at an annual rate of 1% in the second quarter, with the GDP purchases price index coming in at 0.5%. The data was announced alongside real personal consumption figures for the second quarter, which declined by -1% and initial jobless claims, which rose by 570 000 in the week to August 22. Continuing jobless claims figures have reached 6133 000.

The 1% fall in GDP was smaller than markets expected, as heightened government spending and initiatives helped to simulate the economy. Economists believe this could help to boost growth in the third quarter, where the US is widely expected to end its recession.

US dollar currency exchange rates are currently valued at EUR0.7027 and GBP0.6184 while sinking against the Australian dollar and Japanese yen.

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