Economic growth in the United States was better than the estimate for the third quarter and it was due to the increase in consumer spending, homebuilding and defense outlays. The gross domestic product, which is the value of all goods and services produced, increased at a 2 percent annual rate compared to 1.3 percent in the previous quarter. This is according to the Commerce Department numbers released today. The average estimated made by 86 economists polled by Bloomberg was 1.8 percent increase.

Consumer confidence reached a five year high in October. It suggested that the increase in spending can be sustained as booming real-estate improves household finances. The White House used the GDP report to promote measure that would strengthen the economy more. The measure includes hiring more teachers. Mitt Romney said that the GDP was a sign that President Barack Obama’s policies have failed.

Most of the stocks dropped, which extended the weekly decline of the Standard & Poor’s 500-Stock Index. The S&P 500 dropped 0.1 percent to 1,411.94 as it closed in New York. The index is currently down 2 percent in October. The Treasury securities increased. It sent the yield on the benchmark 10 year note to 1.75 percent from 1.82 percent the previous day.

The Thomson Reuters/University of Michigan final consumer sentiment index showed an increased to 82.6 in October, which is the highest level since September 2007. The reading in September was 78.3. The average forecast of 60 economists polled by Bloomberg was 83 while the preliminary reading was 83.1 made earlier this month.

The estimates for the GDP ranged from 0.9 to 3.1 percent. The GDP estimate is the first for the current quarter, with other releases scheduled for November and December.

Consumer purchases went up at 2 percent annual rate from 1.5 percent in the second quarter. Purchases added 1.4 percentage points to the growth.

About The Author

Abby is fun loving yet serious professional, born and raised in Sioux Falls, SD. She has a great passion for journalism, her family includes her husband, two kids, two dogs and herself. She has pursued her Mass Communication graduation degree from the Augustana College. She is currently employed at TheWestsideStory.net, an online news media company located in Sioux Falls, SD.

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One Response

  1. chas holman

    What I struggle with most about Governor Romney and these men he endorses for high office. Is that they truly would like to end ALL abortion for ALL women and they say nutty things like if you are raped they don’t want you to terminate the pregnancy because it is ‘God’s will’.

    And these SAME people say they will repeal Obamacare because they don’t want Government in ‘their’ (tax payer paid for) health care.

    It truly is maddening ignorance.

    Reply

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