The U.S. economy expanded at a slightly slower pace than initially
estimated in the third quarter, as steady consumer spending was offset
by a slowdown in inventory investment.
Gross domestic product,
the broadest measure of goods and services produced across the economy,
advanced at a 2.0% seasonally adjusted annual rate in the third quarter,
the Commerce Department said Tuesday. The agency last month had
estimated third-quarter GDP growth of 2.1%.
The report
highlighted the relative strength of the U.S. economy compared with
overseas economies (see graph at this link), as domestic demand remained firm but exports slowed,
a trend economists expect to continue into next year.
Economists
surveyed by The Wall Street Journal estimated the latest revision would
show 1.9% growth. [Hardly bad news.]
U.S. home resales posted their
sharpest drop in five years in November, a potential warning sign for
the health of the U.S. economy although new regulations on paperwork for
home purchases may have driven the decline.
The
National Association of Realtors said on Tuesday existing home sales
plunged 10.5 percent to an annual rate of4.76 million units. That was
the sharpest decline since July 2010. October's sales pace was revised
slightly lower to 5.32 million units.
NAR economist Lawrence Yun said
most of November's decline was likely due to regulations that came into
effect in October aimed at simplifying paperwork for home purchasing.
Yun said it appeared lenders and closing companies were being cautious
about using the new mandated paperwork. [Really?]
Also
potentially weighing on home sales, the median price for a U.S.
existing home rose to $220,300 in November, up 6.3 percent from the same
month in 2014. Yun said the steep rise in prices and shrinking
inventories could also be constraining home purchases. [That makes more sense.]
Used in futures trading to refer to the contract month with an expiration date
closest to the current date, which is often in the same month. In other
words, this would be the shortest duration contract that could be
purchased in the futures market. Contracts that are a month or more behind the front month contracts are referred to as back month contracts.
Cowboy in a Continental Suit, Marty Robbins
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