US economy grows 2% in Q3

The US economy grew at a 2% annual rate in the third quarter, faster than in the previous three months.

Growth was in line with economists' forecasts and compares with a 1.7% expansion in the second quarter and 3.7% in the first. Although the economy has grown in each of the last four quarters, the US unemployment rate remains around 10%. As a result, the Federal Reserve is still expected to embark on a second round of quantitative easing at its meeting on Tuesday and Wednesday, although questions remain over the size of the programme. The US dollar fell on the news, dropping 0.5% to ¥80.66, however it rose 0.39% to 72 cents against the euro.