US GDP revised upwards, job market shows strength

US GDP growth rates (Source: TRADINGECONOMICS.COM)

What happened?

In a recent development, the US first quarter GDP growth has experienced a significant upward revision, surging to 2%. Adding to the economic landscape, a separate report released recently revealed a decrease in initial jobless claims for the week ending June 24. The figures from the Labor Department indicate a drop of 26,000, bringing the number down to 239,000—lower than what analysts had anticipated.

Why did it happen?

The revision of the US first quarter GDP growth to 2% signifies an upward adjustment in economic performance during that period. The decline in initial jobless claims indicates a relatively tight labor market, suggesting potential labor shortages and increasing pressures for wage growth.