Stateside boost as exports jump

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THe world’s biggest economy grew at a faster-than-expected pace in the second quarter, bolstering the case for winding down monetary stimulus.

The 2.5 per cent annualised rise in US GDP for the April-June period was a revision on initial estimates that GDP had expanded by 1.7 per cent. Recent data on trade showed that exports climbed during the period at their fastest rate in more than two years, with the new GDP figure more than double the pace clocked in the first quarter.

The reports will boost confidence that the US economy is turning a corner despite austerity measures and a still-high jobless rate, but could see US central bank economists more likely to begin reducing bond purchases later this year.