Okay, Jobless Clams numbers were almost on the money as compared to expectations. GDP number looks hot, and there is no denying that it is a really good number, up 2.8% versus economists’ expectations of 2.0%, and better than the prior number of 2.5%. But closer examination makes one take pause.
Initial Jobless Claims
GDP Annualized QoQ
GDP Price Index
Core PCE QoQ
The economy in the U.S. expanded in the third quarter at a faster pace than forecast, led by the biggest increase in inventories in more than a year as household purchases and business investment slowed.
Gross domestic product rose at a 2.8 percent annualized rate after a 2.5 percent gain the prior three months. The median
forecast of economists surveyed by Bloomberg called for a 2 percent advance. Consumer spending climbed 1.5 percent, the
smallest increase since 2011.
The biggest gain in inventories since the first three months of 2012 risks holding back production in the current quarter, which began with a 16-day partial shutdown of the federal government. Jobs data tomorrow are projected to show hiring slowed in October, helping explain why Federal Reserve policy makers are pressing on with stimulus.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury