It's The Economy Stupid: GDP & Jobless Numbers

 

 

 

Economic Event	Period	Actual Reported	Economic Survey	Original Prior	Revised Prior
GDP QoQ Annualized	3Q	2.5%	2.5%	1.3%
Personal Consumption	3Q	2.4%	1.9%	0.7%
GDP Price Index	3Q	2.5%	2.4%	2.5%
Initial Jobless Claims	Oct 22	402K	401K	403K	404K
Continuing Jobless Claims	Oct 15	3645K	3700K	3719K	3741K

 

GDP

 

The U.S. economy grew in the third quarter at the fastest pace in a year as gains in consumer spending and business investment helped support a recovery on the

brink of faltering.

 

Gross domestic product, the value of all goods and services produced, rose at a 2.5 percent annual rate, matching the median forecast of economists surveyed by Bloomberg News and up from a 1.3 percent gain in the prior quarter, Commerce Department figures showed today in Washington. Household purchases, the

biggest part of the economy, increased at a more-than-projected 2.4 percent pace.

 

Americans last quarter cut savings to boost purchases as incomes dropped by the most in two years, calling into question the sustainability of the acceleration in sales. With the lack of jobs holding back wages, the Obama administration and Federal Reserve policy makers have proposed additional measures aimed at stimulating growth and hiring.

 

JOBLESS CLAIMS

 

Fewer Americans filed applications for unemployment assistance last week, while those on benefit rolls dropped to a three-year low, signaling limited improvement

in the labor market.

 

First-time jobless claims decreased by 2,000 to 402,000 in the week ended Oct. 22, Labor Department figures showed today in Washington. The median forecast of economists in a Bloomberg News survey called for a drop to 401,000. The number of people collecting unemployment benefits fell in the prior week by 96,000 to 3.65 million, the fewest since September 2008.

 

A little more troubling is that fact that today’s data showed the four-week moving average, a less volatile measure than the weekly figures, rose to 405,500 last

week from 403,750.

 

And of course, the revisions to previously released jobless claim numbers were all revised upward, which also is not a good trend.

 

JB

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us