US GDP rises higher than expectations

2.9% rise

The US economy expanded 2.9% between September and December last year, higher than expectations, according to data published by the Commerce department.

Economists had anticipated a 2.6% increase for the quarter. However, despite outperforming expectations, growth still slowed from 3.2% in the third quarter. Several commentators said this bolsters the Federal Reserves claim the economy is more robust than expected and the Federal Reserve's attempt to achieve a soft landing through raising interest rates is succeeding. Investor forum warns of UK equities 'diminished importance' Since March, the US central bank had raised interest rates by more than 4 percentage points, moving at 0.75 percentage points at a time. "GDP growth of 2....