Merrills increases H2 2009 US GDP growth prediction

Bank of America Merrill Lynch has almost doubled its estimates for US real GDP growth for the rest of the year.

Its annualised projection for Q3 2009 is now 2.6%, with 2.8% predicted for Q4. This is compared to a previous estimate of an average of 1.4% for both quarters, based on predicted hikes in consumer spending and house sales. It believes better than expected economic growth in the rest of the world will fuel demand for US exports and also the working down of stock inventories as reasons for the upgrade. According to figures from the bank, growth in the US was 1.1% last year. "While the US will continue to suffer from the effects of recapitalisation and restructuring within the fina...