Fed not likely to increase US rates until September

The US economy slowed sharply in the first quarter of the year, with annualised GDP growth falling to just 0.2% from 2.2% in the final quarter of 2014.

Thus, the economy virtually stagnated in quarter one.

This was largely the result of a number of temporary factors, such as severe weather conditions in parts of the US and a west coast port strike. Lower investment by energy firms, as a result of the collapse in oil prices, also negatively impacted on GDP.