US economic growth revision to 3.7% boosts markets
Shares rise and oil prices jumped 9% after revised figures showed the US economy grew by far more than had been thought between April and June.
The economy grew by an annualised rate of 3.7%, up from the first estimate of 2.3%. Growth of 0.6% in the first three months of the year was not revised.
The update reflected greater corporate investment than previously estimated.
The growth in the economy overall was due to strong consumer and government spending, and higher exports.
Inventories were also higher than the Commerce Department had initially estimated.
The revision was welcome news to investors that have experienced a tough week on global stock markets, triggered by fears that the Chinese economy is slowing. They had expected the GDP number to be revised up, but not by as much as it was.
Markets bounce
"A healthy upwards revision to US GDP should act as a much needed soothing balm for investors after the turbulence of this week," said Nancy Curtin, chief investment officer at Close Brothers Asset Management.
The news gave a sharp boost to the price of oil, which rose 10%, albeit from a very low base.