Category Archives: U.S. Economic News

[12/23/14]  The U.S. economy grew at its fastest rate in more than a decade between the months of July through September, according to government data released Tuesday morning, marking the latest sign that a once-sluggish recovery is now running at full speed. The Commerce Department said gross domestic product growth hit an annualized rate of 5 percent in the third quarter, revised upward from the previous estimate of 3.9 percent. Not since 2003 has the economy expanded so quickly. The better-than-expected GDP numbers helped push the Dow Jones Industrial Average above 18,000 for the first time, the latest in a series of record highs. The S&P 500 also...

[12/23/14]  Stocks are gaining Tuesday as the Dow and S&P 500 stretch further into record territory following news of 5% economic growth in the third quarter. As of 10:17 a.m. ET, the Dow Jones industrial average and S&P 500 are up 0.2% or a little more. The Nasdaq composite is down 0.2%. The blue-chip Dow shot past the 18,000 milestone for the first time at the opening bell and is cruising higher. Consumer spending is also strong, another economic report Tuesday morning shows. It was buoyed last month by rising wages and plunging gasoline prices. Consumption increased 0.6% after rising 0.3% in October, which was revised upward from 0.2%,...

[12/02/14]  U.S. construction spending rose more than expected in October as both private and public outlays increased, which could ease concerns of a sharp slowdown in fourth-quarter economic growth. Construction spending rose 1.1 percent, the largest gain since May, to an annual rate of $970.99 billion, the Commerce Department said on Tuesday. September's construction outlays were revised up to show only a 0.1 percent drop instead of the previously reported 0.4 percent fall. Economists polled by Reuters had forecast construction spending rising 0.6 percent in October. The upbeat construction data suggests some momentum in the economy early in the fourth quarter. Weak durable goods orders data has raised concerns of a sharp moderation in the...

[12/02/14]  Detroit automakers sold more cars and trucks in November than analysts expected, as a surging economy and falling fuel prices helped drive sales of big pickups and SUVs. General Motors on Tuesday said November sales rose 6.5 percent to 225,818, topping the average 217,462 projected by auto analysts. GM said its average transaction prices were a record $35,600, up $790 per vehicle from October and up $3,100 from a year ago. Sales of GM's Chevrolet Silverado pickup climed nearly 25 percent. Chrysler said sales rose 20.1 percent to 170,839, on strong showings by its Jeep brand and Ram pickup trucks, the unit of Fiat Chrysler Automobiles said on Tuesday. Analysts had expected 142,275. Jeep SUV sales jumped 27...

[11/14/14]  Retail sales rebounded in October as tumbling gasoline prices left consumers with more discretionary cash. Retail sales increased 0.3% last month, roughly in line with the 0.2% jump expected by economists surveyed by Action Economics. Excluding volatile auto purchases, sales rose 0.3%. Retail sales fell 0.3% in September, sparking a stock sell-off in October. Last month, a core measure of sales that excludes autos, gasoline, food services and building materials jumped 0.5%, a positive sign for the holiday shopping season. Sales were brisk at clothing stores, rising 0.5% compared to September. Sales also increased solidly at furniture and health and personal care stores. Sales fell 1.6% at electronics and...

[10/28/14]  Consumer confidence advanced in October as Americans enjoyed further price drops at the gas pump and the job market continued to improve. The Conference Board’s index climbed to 94.5 this month, the highest since October 2007, from a September reading of 89 that was stronger than initially estimated, the New York-based private research group said today. The gauge exceeded the most optimistic projection in a Bloomberg survey of economists. More job security, gasoline prices at an almost four-year low, and a strengthening labor market are setting the stage for a stronger expansion. Bigger wage increases and a reduction in long-term unemployment would help keep sentiment improving and lay the groundwork...

[10/21/14]  Sales of previously-owned homes rose in September to reach their fastest pace in 2014, even though investors are leaving the market. That’s good news for regular people, who are enjoying low mortgage rates and decreased competition for homes. Read moreComments are closed

[10/13/14]  It's nervous time again on Wall Street. A late-day sell-off on Wall Street sent stocks careening sharply lower again Monday, dashing hopes for a rebound rally after last week's plunge, pushing the major U.S. stock indexes closer to an official 10% correction and causing fresh worries for investors that were celebrating record highs just three weeks ago. Investors hoping for an end to the market's wildest price swings since the fall of 2011 got yet another frightful dose of market volatility Monday when a steep, late-day dive left the Dow Jones industrial average down 223.03 points, or 1.4%, to 16,321.07. It was the Dow's fifth-straight day of...

[09/30/14]  Americans boosted spending by a healthy amount in August, with about half of the increase coming from auto sales. Income rose by a modest amount. The Commerce Department says consumer spending rose 0.5% in August after showing no gain in July. It was the best result since spending also expanded 0.5% in June. Helped by strength in wages and salaries, income rose 0.3% in August, slightly faster than a 0.2% July increase. The spending gain was welcome evidence that the economy is maintaining strength in the current July-September quarter. Consumer spending accounts for about 70% of economic activity, and the slowdown in July had raised concerns about...

[09/28/14]  After years of factory closings shrank the nation's industrial footprint, a mini-boom in plant construction is beginning to reverse the trend and fuel faster economic growth. A 12.6% surge in spending on non-residential structures — notably new and expanding factories — was a big reason for last week's upward revision of second quarter economic growth. The Commerce Department said the economy expanded at a 4.6% annual rate, up from its previous 4.2% estimate and the strongest growth in 2 ½ years. An auto sales boom, the housing recovery and the oil and natural gas drilling frenzy are all forcing manufacturers to build or enlarge plants to supply...