Entries in US Department of Commerce (2)


Revised GDP Shows Stronger Growth in Summer Quarter

Image Courtesy - Getty Images(WASHINGTON) -- The U.S. economy grew at a faster pace during the summer quarter than previously estimated.

The annual growth rate for the third quarter was 2.5 percent, the Commerce Department said Tuesday, compared to an earlier estimate of just 2 percent.

More spending by consumers and rising overseas sales of American-made products gave a lift to the economy, but the modest improvement was not enough to drive down the jobless rate.

"It's a mixed bag in that it's better growth, but sets the stage for somewhat weaker growth going forward," said economist Diane Swonk of Mesirow Financial.

"Retailers who have been complaining about inventories, they have a reason to," Swonk said. "Inventories were built faster than we thought over the summer, and faster than consumers could buy them."

The news, she says, means retailers are going to make an extra push this holiday season.

"To the benefit of consumers, they're going to be doing more discounting, even more discounting than they thought, not only through this Black Friday holiday, but as we move into the holiday season to now  unload those unwanted inventories."

Copyright 2010 ABC News Radio´╗┐


New Income, Spending Figures Show Continued Weakness in Economy

Photo Courtesy - Getty Images(WASHINGTON) -- New numbers released Monday show a drop in monthly income for the first time in more than a year.  According to the U.S. Department of Commerce, monthly income dropped one tenth of one percent in September. 

The Commerce Department also says spending growth slowed in September to the weakest pace in three months.  Figures show spending rose by two tenths of a percent.´╗┐

Copyright 2010 ABC News Radio

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