Economic Indicators, Stock Market & Investment Reports

12.22.2009

U.S. 3Q GDP revised down

The U.S. economy grew at the fastest pace in two years during the third quarter, but the revised annual growth rate of 2.2% was much slower than initially reported, the Commerce Department estimated Tuesday. The revisions to third-quarter GDP were in three major areas: Business investment, consumer spending, and inventories.

U.S. real gross domestic product increased for the first time since the spring of 2008, boosted by higher consumer spending, a rebound in investments in homes, a slower pace of inventory reduction, more exports, and robust government spending.

12.04.2009

Surprising Positive Jobs Report in October


Surprising job market improvement adds confidence on the economic recovery. The U.S. unemployment rate went down to 10 percent from a 26-year high of 10.2 percent while only 11,000 jobs disappeared in October. This is the best economic news since the recession began two years ago

Although 15.4 million people are struggling to find work, the November report revealed signs of improvement across the country. More than 50,000 temporary workers were hired, the first surge in months and often a precursor to companies hiring permanent workers. Employees worked more hours, even in manufacturing.


The bright jobs report suggests that an end might be in sight for huge stimulus efforts and rock-bottom interest rates. It suggested to investors that the Federal Reserve might lift interest rates sooner than analysts had expected. Higher interest rates mean more lucrative returns for investors who hold dollars.

A strengthening dollar lured investors away from the stock market on Friday. As investors snapped up currencies, giving the dollar one of its best rallies of the year, stocks stumbled and spent much of the day meandering between gains and losses before ending the day in positive territory.

Many forecasters suggest that the turning point, from jobs being cut to jobs being added, will come by March, assuming the economy continues to grow, as it finally started to do in the third quarter.