The Week in Numbers: US Economy Expanded by 2.6% in the Second Quarter

The US Federal Reserve kept interest rates unchanged but is looking to wind down its balance sheet of US$4.5 trillion worth of bonds “relatively soon”. Meanwhile, the country’s gross domestic product (GDP) grew 2.6% for the second quarter, which covers the period from April to June this year. Stronger consumer spending drove the improvement. In the first quarter, GDP growth was at 1.2%.

The International Monetary Fund (IMF) said in the July update of its World Economic Outlook that the global GDP is forecasted to grow 3.5% in 2017 and 3.6% next year, unchanged from its April estimates. However, it cut growth forecasts in the UK and the US.

Michael Kors Holdings Ltd (NYSE: KORS) will be gobbling up luxury shoemaker, Jimmy Choo PLC (LON: CHOO), for around US$1.2 billion. The purchase of Jimmy Choo will expand Michael Kors’ portfolio to beyond its own brand name and give it a presence in the higher-end luxury market. Under the terms of the agreement, shareholders of Jimmy Choo will receive 230 pence per share. John D. Idol, Chairman and Chief Executive Officer of Michael Kors, said that his “company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”

Singapore’s inflation, as measured by the Consumer Price Index (CPI), rose 0.5% in June as compared to a year earlier. This is a big slowdown from the 1.4% year-on-year increase seen in May. The core inflation measure, which excludes price changes for cars and accommodation, increased 1.5%, a slight decline from the 1.6% rise in May. Lower services and food prices caused core inflation to taper off.

And finally,, Inc. (NASDAQ: AMZN) has launched its Prime Now services in Singapore, offering express, same-day delivery services. This makes it the online retailer’s first foray into the Southeast Asian market. There are several delivery options available. For orders below S$40, users pay a delivery fee of S$5.99 while for orders above S$40, delivery is free in a two-hour delivery window. For those who are unable to hang in there for two hours, they can pay S$9.99 per order to receive their goods within an hour.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Amazon. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.