Threadneedle's Weldon ups US GDP forecast to 3%

Threadneedle's Cormac Weldon has revised upwards his forecast for US GDP growth this year, from 2.5% to 3%, on the back of an improved macro outlook for the region.

Weldon, the group's head of US equities, says capital expenditure is recovering following the implementation of QE2 but warns long-term economic headwinds remain. The country's high unemployment rate, which currently stands at 9.4%, and worries over inflationary pressure picking up are major threats says Weldon. "We have increased the forecast as there are a lot of positive fundamentals that signs of an economic recovery are coming through with corporate sector profitability looking strong, and this is supported by valuations." "Capital expenditure is recovering, in particular in t...