The US growth rate has increased to 2%, from 1.7% between April and June, but is still less than the 3.7% growth recorded from January to March. This growth has been despite the fact that there is growing unemployment in the country. Looking at this increased growth, the Fed said that they will go back into quantitative easing by flushing fresh money into the economy through the purchase of government bonds.
Where is this growth coming from?
Unfortunately, it is said that businesses are building up their inventory of goods and services and this contributed "more than two-thirds of the 2% annualised expansion in the economy".
However consumer spending has also risen by 0.4 %.
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