dagblog - Comments for "Economic Growth in U.S., Though Still Modest, Speeds Up"

interesting from that: we

artappraiser — Thu, 27 Oct 2011 18:42:32 +0000

In reply to Economists React: ?Where Are

interesting from that:

we must highlight the improvement in spending on services. Spending on this category rose by 3.0% and is the largest gain since the middle of 2006. This is not unimportant as spending on services accounts for 65% of all personal consumption.

Economists React: ?Where Are

Donal — Thu, 27 Oct 2011 17:34:20 +0000

In reply to Economic Growth in U.S., Though Still Modest, Speeds Up

Economists React: ‘Where Are the Recession Calls Now?’

–Despite the high jobless rate and the dip in confidence, consumers, which account for a lion’s share of economic growth, accelerated spending, especially on cars. In the process, the saving rate dipped to 4.1 percent. Consumers are not about to embark on a spending spree. In addition to the poor job picture, consumers are deleveraging trying to slim down. They spend only when there is value and are very price conscious. The holiday shopping season is not expected to be a barn-burner. However, the season, could put consumers in better mood and boost discretionary purchases increasing retail sales by 2 to 3 percent compared to a year ago giving a lift to economic growth.. –Sung Won Sohn, Smith School of Business and Economics

–The level of real GDP ($13.353 trillion) passed the prior cyclical peak of Q4:2007. Finally. Recall early versions of GDP achieved the same milestone, but were subsequently erased by downward revisions. –Jay Feldman, Credit Suisse

GDP Up 2.5% in Q3; Enough to

artappraiser — Thu, 27 Oct 2011 17:25:05 +0000

In reply to Economic Growth in U.S., Though Still Modest, Speeds Up

GDP Up 2.5% in Q3; Enough to Stop “Recession” Talk and QE3?
By Avi Salzman, Barron's, October 27, 2011

U.S. Gross Domestic Product rose 2.5% in the third quarter, slightly below the 2.7% that economists surveyed by Dow Jones Newswires had expected. But it was still the biggest jump in the GDP in a year, and well above the 1.3% pace in the second quarter.

Business investment jumped 16.3%, leading GDP higher. Personal consumption expenditures also grew 2.4%, more than most economists had predicted and a sign that consumers continue to spend despite the difficult economy and high unemployment. Incomes continue to drift lower, however, and Americans appear to be dipping into savings to pay for purchases.

Conrad DeQuadros and John Ryding of RDQ Economics don’t see how the Fed can justify more quantitative easing in the face of a relatively strong GDP report....

Consumer spending drives

artappraiser — Thu, 27 Oct 2011 17:01:48 +0000

In reply to Economic Growth in U.S., Though Still Modest, Speeds Up

Consumer spending drives stronger US growth
By Andrew Beatty, Agence France Presse, 4 hours ago

WASHINGTON — Boosted by stronger consumer spending, US economic growth nearly doubled to 2.5 percent last quarter, the Commerce Department said Thursday, quelling fears of a fresh downturn.

Americans spent more on everything from computers to services as figures squashed claims that the economy was stumbling into a double-dip recession -- sending already buoyant stock markets soaring.

Describing the report as "encouraging," Peter Newland of Barclays Capital noted "the bulk of the rebound... was centered in personal consumption, which was up 2.4 percent."

The prospect of the mighty US consumer reaching back to their pocketbooks raised hopes of a more firm-footed recovery after measly growth rates of 0.4 and 1.3 percent in the first two quarters sapped confidence.

"The bottom line is that the third quarter turned out to be a period of underlying strength," said Stephen Stanley, chief economist for Pierpont Securities.

Economists had expected the overall rate of growth to hit 2.3 percent.

Despite the relief, there were still concerns that this clip of growth is not enough to substantially bring down painfully high unemployment rates: a point the White House was quick to make.

"While the continued expansion is encouraging, faster growth clearly is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment," said Katharine Abraham of President Barack Obama's Council of Economic Advisers....