Category Archives: U.S. Economic News

[01/30/14]  Highest consumer spending levels in three years boosted growth, which had been hit by higher taxes and federal spending cuts. The US economy expanded at an annual rate of 3.2% in the last three months of 2013, the Commerce Department said on Thursday, as consumers and businesses largely ignored a government shutdown and fight over the debt ceiling. The pace of growth slowed from 4.1% in the previous quarter but still means that US gross domestic product (GDP) the broadest measure of goods and services produced across the economy, grew at an annual rate of 3.7% in the last half of 2013, a pace unseen since 2003. A...

[1/3/14]  Ben S. Bernanke said the headwinds that have held back the U.S. economy may be abating, leaving the country poised for faster growth as his tenure as Federal Reserve chairman comes to an end. “The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for U.S. economic growth in coming quarters,” Mr. Bernanke said Friday in a speech in Philadelphia. “Of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts.” Mr. Bernanke used his remarks to reflect on his eight years...

[12/29/13]  The world economy should snap a three-year stretch of slowing growth in 2014, although the upturn over the next 12 months looks likely to be incremental rather than a leap forward. With stock markets rallying in the twilight days of this year and recent indicators for major economies looking brighter, confidence among investors and analysts is high going into 2014. The U.S. Federal Reserve provided a concrete example of that optimism earlier this month when it decided to start curtailing its unprecedented monetary stimulus, based on the strength of recent signals from the economy. The International Monetary Fund, in its October set of forecasts, expects global economic growth...

[12/26/13]  The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly a month, a hopeful sign for the labor market, while holiday retail sales rose in November and December. Initial claims for state unemployment benefits decreased 42,000 to a seasonally adjusted 338,000, the Labor Department said on Thursday. While the holiday season has made recent claims data so volatile it has been difficult to interpret, Thursday's report showed claims continue in a range that supports expectations for faster economic growth next year. "With labor markets on the mend and consumer confidence on the rise, we look for broader economic improvement...

[11/29/13]  U.S. stocks rose for an eighth straight week, driving the Standard & Poor’s 500 Index to the longest rally in almost a decade, as data on employment and consumer sentiment boosted confidence in economic growth. Tiffany (TIF) & Co. jumped 9.9 percent on better-than-estimated profit, pacing gains among retailers as investors speculate that an improving labor market and falling gas prices will stimulate holiday sales. Apple Inc. climbed 7 percent, helping lift the Nasdaq Composite (CCMP) Index above 4,000 for the first time in 13 years. Hewlett-Packard (HPQ) Co. surged 8.3 percent as revenue and earnings beat analysts’ estimates. Exxon Mobil Corp. slipped 1.6 percent as energy shares retreated on falling oil...

[11/27/13]  Orders for U.S. durable goods dropped in October, reflecting a broad-based retreat and signaling the government shutdown hurt business confidence. Bookings for goods meant to last at least three years decreased 2 percent, matching the median forecast of economists surveyed by Bloomberg, after a 4.1 percent gain in September that was larger than initially reported, the Commerce Department reported today in Washington. Orders for aircraft and capital goods, such as machinery and computers slumped. The 16-day partial federal shutdown last month combined with continuing budget cuts have prompted companies such as Lockheed Martin Corp. (LMT) to trim staff and close factories, which will weigh on growth. A lack of...

[11/18/2013]  The stock market broke through two milestones Monday as a historic rally pushes stocks further into record territory.

The Dow Jones industrial average topped 16,000 for the first time and the Standard & Poor’s 500 index pierced 1,800. Both indexes are on track for their best year in a decade, and have soared more than 140 percent since hitting a Great Recession low more than five years ago.

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[11/08/13]  U.S. job growth unexpectedly accelerated in October as employers shrugged off a partial government shutdown, suggesting the economy was on firm footing and raising the prospect the Federal Reserve may soon decide to temper its bond-buying stimulus. Employers added 204,000 new jobs to their payrolls last month, and 60,000 more jobs were created in September and August than previously reported, the Labor Department said on Friday. The unemployment rate, however, edged up to 7.3 percent from September's nearly five-year low as federal workers were idled. Economists expect a reversal in coming months. The sturdy gain in payrolls beat economists' forecasts for only 125,000 new jobs and joined data...

[11/01/13]   The U.S. manufacturing sector expanded at its fastest pace in more than two years in October, according to an industry report, signaling a strong start to fourth-quarter factory activity despite a government shutdown during the first half of the month. The Institute for Supply Management said on Friday its index of national factory activity rose to 56.4 in October, its best showing since April 2011, handily beating expectations of a slight slowdown in the growth rate. Last month was the fifth in a row of quicker growth in the goods-producing sector, according to ISM's data. "It certainly was a surprise, and a good one. We don't get that...

[10/31/13]  President Barack Obama is casting himself as America's business pitchman. Facing a sluggish economy, Obama on Thursday announced an expanded government role to draw foreign companies to the United States, arguing that the American workforce, cheaper energy costs and an improving economy make the U.S. an attractive home for investments. "Officials at the highest levels, up to and including me, are going to do even more to make the case for investing in America," Obama told a summit of investors, business CEOs and state and local officials. The administration's goal is to attract $1 trillion in new foreign investments in manufacturing or other business over the next five...