Home

 
India Bullion iPhone Application
  Quick Links
Currency Futures Trading

MCX Strategy

Precious Metals Trading

IBCRR

Forex Brokers

Technicals

Precious Metals Trading

Economic Data

Commodity Futures Trading

Fixes

Live Forex Charts

Charts

World Gold Prices

Reports

Forex COMEX India

Contact Us

Chat

Bullion Trading Bullion Converter
 

$ Price :

 
 

Rupee :

 
 

Price in RS :

 
 
Specification
  More Links
Forex NCDEX India

Contracts

Live Gold Prices

Price Quotes

Gold Bullion Trading

Research

Forex MCX India

Partnerships

Gold Commodities

Holidays

Forex Currency Trading

Libor

Indian Currency

Advertisement

 
MCX: U.S. third-quarter growth raised to 3.9%
 
WASHINGTON (MarketWatch) — The economy in the second and third quarters posted its best back-to-back growth in 11 years, offering fresh evidence that the U.S. entered the final three months of the year with a good head of momentum.

The government on Tuesday said gross domestic product rose at a 3.9% annual pace in the third quarter instead of 3.5%. Combined with a 4.6% gain in the second quarter, the U.S. has posted its best six-month stretch of growth since the middle of 2003.
GDP reflects the value of all goods and services produced by the U.S. and it’s the best measure of the nation’s economic health.

Consumer spending, business investment in equipment and the buildup in inventories were all higher than initially estimated. That accounted for the upward revision in third-quarter growth.

The better-than-expected report could aid stocks in Tuesday trading. Economists polled by MarketWatch had expected the government to mark down growth to 3.3%.

Inside the GDP report
The increase in consumer spending, which reflects more than two-thirds of U.S. economic activity, was raised to 2.2% from a first read of 1.8%. Households spent more at retail stores and on auto fuels than previously reported.

The increase in business investment in equipment, another major source of economic growth, was revised up to 10.7% from 7.2%.

Companies also boosted inventories, which add to GDP, by $79.1 billion instead $62.8 billion.

On the downside, export growth was lowered to 4.9% from 7.8%, a sign that slower growth in Europe and Asia is taking a small bite out of the U.S. economy. Imports fell at a 0.7% annual rate vs. a prior estimate of 1.7%.

Most other figures in the GDP report were little changed.

The third-quarter performance dovetails with a raft of evidence showing that the trajectory of an economy has accelerated sharply after a big letdown early in the year. The U.S. is on track to add the most new jobs since 1999 and sectors from manufacturing to retail continue to gain strength.

A plunge in gasoline prices is also fueling renewed optimism about the economy heading into a new year. Consumers are saving $50 or more each month at the gas pump and falling energy costs have reined in inflation after a brief spike in the spring.

Inflation as measured by the PCE index rose at a 1.3% annual rate in the third quarter. That’s down from 2.3% in the prior period.

In the fourth quarter, economists polled by MarketWatch predict the U.S. will grow at a 2.6% rate. A healthy increase in consumer spending could be partly offset by a downturn in federal spending and slower export growth.

The wild card is business inventories. Companies could cut back on production if inventory levels get too high, depressing fourth-quarter growth. Yet that’s unlikely to happen if sales during the holiday season turn out to be as strong as predicted.

Meanwhile, corporate profits slowed sharply in the third quarter, fresh data reveal. The pretax earnings of U.S. companies rose at a 2.1% annual pace, adjusted for depreciation and the value of inventories. That’s down from a 8.4% advance in the second quarter.

Source