GDP Q3 – Advance show GDP expanded by 3.5%, better than the expected 3.2% expansion by analysts, ending a 4-quarter streak of consecutive contraction of GDP. In the 2nd quarter, GPD contracted by 0.7%, after contracting by 6.4% in the first quarter of 2009. The increase in real GDP in the third quarter primarily reflected improvements in personal consumption expenditures (PCE), exports, private inventory investment, federal government spending, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Initial Claims decreased by 1,000 to 530,000 claims for the week ending 10/25, worse than the expected decrease to 524,000, following a level of 531,000 from the previous week. The 4-week moving average was 526,250, a decrease of 6,000 from the previous week’s moving average. Seasonally adjusted insured unemployment from the prior week, ending on 10/17, was 5,960,750, a decrease of 78,750 from the preceding week’s revised level, decreasing the seasonally adjusted insured unemployment rate down by 0.1% to 4.4%.
Upcoming Releases
Personal Consumption Expenditures (10/30 at 8:30 AM EST)
ISM Manufacturing Index (11/01 at 10:00 AM EST)
Construction Spending (11/01 at 10:00 AM EST)
Pending Home Sales (11/01 at 10:00 AM EST)
