Consumer spending was revised down slightly, to a 2. They hope an improving market will lift the spirits of households hit by the highest unemployment in a quarter century and encourage them to spend.
N said on Monday it was offering its 41, U. The Dow Jones home construction index. Separately, the Commerce Department said U. Growth was boosted by government stimulus, including the popular cash for clunkers program and a tax credit for first-time home buyers. Federal Housing Finance Agency showed home prices rose 0.
It was the smallest drop since November SPX closing at its highest level in 14 months [. A slightly more aggressive liquidation of inventories than previously estimated also was a factor in the downward revision to the GDP figures.
It was still the largest gain since the first quarter of The National Association of Realtors said on Tuesday that existing home sales rose 7. A widening trade gap also weighed on growth.
While the expansion in GDP in the July-September period was not as vigorous as had been thought, it was still the fastest pace since the third quarter of and ended four straight quarters of declining output.
The department also said after-tax corporate profits grew While the economy has turned the corner, the effects of the recession continue to reverberate. The deep inventory cuts of the recent quarter should lay the groundwork for a pickup in production. The median home price fell 4. However, recent data, including retail sales, business inventories and trade figures, strongly indicate the pace of growth has gained speed in the fourth quarter.
In addition, nonresidential building activity dropped Economists had thought the final estimate of GDP, which measures total goods and services output within U.
But debate continues over the sustainability of the recovery once government support wanes. Even more heartening, the decline in home prices is fading. A separate report from the U. Most people are looking now for 3. While businesses continued to whittle down their inventories, the pace at which they liquidated stocks slowed sharply from the second quarter, adding nearly 0.
Ford Motor Co F.The reports came on the heels of bullish data on the labour market, manufacturing and housing. Growth estimates for the October-December quarter are currently as high as a % annualised pace.
The economy grew at a % rate in the third quarter. WASHINGTON, Jan 26 (Reuters) - U.S. economic growth unexpectedly slowed in the fourth quarter as the strongest pace of consumer spending in three years resulted in a surge in imports.
Gross domestic product expanded at a percent annual rate also restrained by a modest pace of inventory. However, revisions to December data on construction spending, factory orders and wholesale inventories have suggested the fourth-quarter growth estimate could be raised to a percent pace.
Dec 22, · * U.S. existing home sales highest in nearly three years * Economy grew at pct rate in Q3, less than expected * Weak business investment holds back growth.
They also see a modest lift from a $ trillion tax cut package approved by the Republican-controlled U.S. Congress this week, in the largest overhaul of the tax code in 30 years. The reports came on the heels of bullish data on the labor market, manufacturing and housing.
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