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Economy in U.S. Probably Cooled in Third Quarter Before Shutdown
7 November 2013, by Shobhana Chandra (Bloomberg)
Economy in U.S. Probably Cooled in Third Quarter Before Shutdown - Bloomberg
Excerpt:
The economy slowed in the third quarter, indicating the U.S. expansion lost momentum prior to the partial shutdown of the federal government, economists project a report will show today.
Gross domestic product, the value of all goods and services produced, rose at a 2% annualized rate after expanding at a 2.5% pace in the previous three months, according to the median forecast of 87 economists surveyed by Bloomberg.
Consumer spending, the biggest part of the economy, was probably the weakest in more than two years.
The projected pace of growth matches the average since the end of 2010, highlighting an economy thats struggling to accelerate and helping explain why Federal Reserve officials are pressing on with stimulus.
The 16-day government shutdown that restrained corporate and consumer spending prompted economists to trim growth forecasts for the current quarter.
The economy was a bit slower than in the prior quarter, though generally quite similar, said Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh.
Progress remains moderate but disappointing. The shutdown knocked some of the growth out of the fourth quarter.
Economists at High Frequency Economics Ltd. said the third-quarter GDP figures will also reflect a smaller gain in homebuilding, due in part to a pickup in mortgage rates, and a narrower trade gap than in the previous three months.
The Commerce Department will release the GDP figures at 8:30 a.m. in Washington. Economists estimates ranged from 1.2% to 3%.
The data, initially slated for release on Oct. 30, were delayed by the government shutdown.
7 November 2013, by Shobhana Chandra (Bloomberg)
Economy in U.S. Probably Cooled in Third Quarter Before Shutdown - Bloomberg
Excerpt:
The economy slowed in the third quarter, indicating the U.S. expansion lost momentum prior to the partial shutdown of the federal government, economists project a report will show today.
Gross domestic product, the value of all goods and services produced, rose at a 2% annualized rate after expanding at a 2.5% pace in the previous three months, according to the median forecast of 87 economists surveyed by Bloomberg.
Consumer spending, the biggest part of the economy, was probably the weakest in more than two years.
The projected pace of growth matches the average since the end of 2010, highlighting an economy thats struggling to accelerate and helping explain why Federal Reserve officials are pressing on with stimulus.
The 16-day government shutdown that restrained corporate and consumer spending prompted economists to trim growth forecasts for the current quarter.
The economy was a bit slower than in the prior quarter, though generally quite similar, said Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh.
Progress remains moderate but disappointing. The shutdown knocked some of the growth out of the fourth quarter.
Economists at High Frequency Economics Ltd. said the third-quarter GDP figures will also reflect a smaller gain in homebuilding, due in part to a pickup in mortgage rates, and a narrower trade gap than in the previous three months.
The Commerce Department will release the GDP figures at 8:30 a.m. in Washington. Economists estimates ranged from 1.2% to 3%.
The data, initially slated for release on Oct. 30, were delayed by the government shutdown.
