Biden spending binge triggers fastest US growth in two years

In This Article:

The New York Stock Exchange is poised to open higher after the US economy grew faster than expected
The New York Stock Exchange is poised to open higher after the US economy grew faster than expected - REUTERS/Brendan McDermid

The US economy grew faster than expected in the third quarter of the year amid a surge in spending by Joe Biden’s administration.

The US economy grew by 5.2pc in the three months to September, better than previous estimates of 4.9pc.

Consumer spending also grew, albeit at a slower than forecast pace of 3.6pc, fueling a rally on stock and bond markets amid growing signs that the Federal Reserve will be able to begin cutting interest rates soon.

The two-year US Treasury bond yield - which moves inversely to its price - has fallen to its lowest level since July at 4.66pc while stocks on Wall Street also made gains.

It comes as Joe Bidens’ Inflation Reduction Act hands out green subsidies to companies investing in the United States, adding $260bn of government spending over the next decade.

Money markets have fully priced in the first US interest rate reduction by May after Fed Governor Christopher Waller, deemed a hawk, hinted on Tuesday at lower interest rates in the months ahead if inflation continued to ease.

Bond yields have also been falling in the eurozone as data from showed lower-than-expected inflation in Germany. The German DAX stock index rose 1pc to touch a four-month high.

Read the latest updates below.


06:23 PM GMT

Signing off

That’s it from this live blog today. Chris Price will be back tomorrow morning, but in the meantime, I’ll leave you with a few of the latest business stories from The Telegraph:


05:04 PM GMT

Deliveroo to expand into DIY

Deliveroo is planning to start selling everything from hammers and drills to makeup in a bid to boost its flagging growth rate, reports Daniel Woolfson:

Customers will soon be able to order DIY equipment, electronics, toys and beauty products through the takeaway app.

Continue reading...

A Deliveroo rider on an electric bike in the City of London earlier this month
A Deliveroo rider on an electric bike in the City of London earlier this month - Daniel Leal/AFP

05:02 PM GMT

UK households face years of falling living standards, says OECD

Big government expenditure means that householders will continue to see value their after-tax income decline, despite falling inflation, according to the Organisation for Economic Co-operation and Development (OECD).