GDP Growth Is Revised Upward To 3.1% During Third Quarter; Weekly Unemployment Claims Rise Slightly

Thursday, December 20, 2012 09:15
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GDP Growth Is Revised Upward To 3.1% During Third Quarter; Weekly Unemployment Claims Rise Slightly

Tags: economic indicators | Economic Outlook | economy

Unemployment claims rose for the first time in five weeks, indicating that continued improvement in the jobs market depends upon stronger economic growth.
 
In a separate report, US gross domestic product (GDP) for the third quarter was revised upward to 3.1% from the previous report of 2.7%.

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The increase of 17,000 in jobless claims to 361,000 during the week ending December 15 was slightly higher than forecasts of 360,000.
 
Analysts say they no longer look for layoffs to factor into the numbers but are waiting for hiring to improve.
 
Consumer spending was also revised upward to 1.6% from the previously reported 1.4%. The increase was primarily due to an increase in healthcare expenditures.
 
Imports are subtracted from gains in GDP and fell .6% during the third quarter, mainly because of lower oil prices. Last month, imports gained .1%.
 
Economic growth in the third quarter improved at a 1.3% rate over second quarter growth.
 
The price index for personal consumer expenditures rose at a 1.6% annualized rate, still below the Fed’s target of 2% or less.
 
On the employment front, about 12 million Americans looking for work still cannot find jobs.
 
Others have simply dropped out of the workforce. This is a concern to policy makers.
 
The number of people filing for unemployment benefits was equivalent to 2.5% of currently employed workers who are paying into the system as of the week ending December 8, a rate that was unchanged from the prior week.

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