In the US, the final real GDP data that was released in June for the first quarter of 2014 was worse than expected at -2.9%. There was no reaction from the market suggesting that investors have already written off the US economy’s first quarter performance as a result of their adverse weather conditions.
Subsequently, June’s nonfarm payrolls surprised on the upside with an additional 288,000 jobs being created. This resulted in the unemployment rate declining from 6.3% to 6.1%. Combined with positive manufacturing purchasing manager index, the US recovery looks to be progressing solidly. Markit and ISM PMI came out at 57.3 and 55.3 respectively.