Page 7 - Minister Alex Schwengle
P. 7
U.S. NEWS A7
Saturday 26 September
US Financial Front:
Economy grew at 3.9 percent rate in April-June quarter
MARTIN CRUTSINGER While economists believe
growth in the third quarter
AP Economics Writer has slowed to around 2.2
percent to 2.5 percent,
WASHINGTON (AP) — The they expect a modest ac-
celeration in activity for the
U.S. economy grew at final three months of this
year.
an even faster clip in the “Overall, the outlook on
the U.S. economy for the
spring than previously es- remainder of the year re-
mains fairly optimistic, sup-
timated. But that growth ported by continuing job
creation, increasing con-
likely slowed in the summer, sumer spending, improve-
ments in the housing sec-
held back by global head- tor, and solid manufac-
turing numbers,” said Jim
winds and turbulent finan- Baird, chief investment offi-
cer for Plante Moran Finan-
cial markets. cial Advisors. The revision
in second quarter growth
The overall economy ex- was led by a boost in con-
sumer spending, which ex-
panded at an annual rate panded at a 3.6 percent
rate, up from the previous
of 3.9 percent in the April- estimate of a 3.1 percent
advance. The stronger re-
June quarter, up from a sult reflected increases in
spending on such consum-
previous estimate of 3.7 er services as health care
and transportation.
percent, the Commerce Business investment spend-
ing was revised higher, re-
Department reported
Friday. The new-found
strength came from ad- Construction workers work at the site of a high-rise condominium as part of the downtown Doral
complex developed by the Codina Partners in Doral, Fla. The Commerce Department issued the
ditional gains in consumer third of three estimates of how the U.S. economy performed in the April-June quarter on Friday,
Sept. 25, 2015.
spending, business invest-
(AP Photo/Lynne Sladky)
ment and residential con-
struction.
The second quarter expan- flecting increased spend- quarter growth. The initial Once unwanted invento-
ing on structures and equip- look tabbed GDP growth ries are worked down, the
sion in the gross domestic ment. Residential construc- in the spring at 2.3 percent, expectation is that growth
tion grew at a 9.3 percent which was revised up to 3.7 will accelerate again in the
product, the economy’s pace, even better than percent last month. final quarter of the year.
the 7.6 percent growth es- Economists believe the Economists at Macroeco-
total output of goods and timated last month. subsequent slowdown in nomic Advisors are fore-
Friday’s report was the the summer will reflect a casting GDP growth of 2.7
services, was a marked im- government’s third and reduction by businesses in percent in the October-De-
final estimate for second restocking their inventories. cember period. q
provement from an ane-
mic 0.6 percent increase
in the first quarter when the
economy was battered by
a harsh winter.
Consumer sentiment falls to lowest level in nearly a year
Shoppers ride an escalator beside a special one for shopping PAUL WISEMAN world’s second-biggest, July, August and Septem-
carts in the CityTarget store in Boston. The University of Michigan AP Economics Writer and continued economic ber.
issued its monthly index of consumer sentiment for September WASHINGTON (AP) — stress in Europe. “The drop poses modest
on Friday, Sept. 25, 2015. Worries about the global “Consumers now believe downside risks for consum-
economy pushed Ameri- that that global economic er spending,” Jesse Hurwitz,
(AP Photo/Michael Dwyer) can consumers’ spirits to trends can directly influ- an economist at Barclays
the lowest level in almost a ence their own job and Research, wrote in a re-
year, the University of Mich- wage prospects,” he said. search note.
igan reported Friday. On Thursday, heavy equip- Still, the Michigan index is
The university’s consumer ment manufacturer Cat- up from 84.6 a year ago.
sentiment index fell to 87.2 erpillar, hurt by China’s The U.S. economy appears
this month from 91.9 in slowdown, announced it to be gathering strength.
August. The third straight would cut up to 10,000 jobs The government reported
monthly drop left the index through 2018. Friday that U.S. gross do-
with its weakest reading The Michigan index hit a mestic product expanded
since October 2014. low of 55.3 in November at a robust 3.9 percent
Richard Curtin, chief econ- 2008, in the depths of the annual pace from April
omist for the survey, said Great Recession. It began through June. Unemploy-
consumers are disturbed to recover and hit an 11- ment has dropped to a
by signs of trouble in the year high 98.1 in January. seven-year low 5.1 percent
Chinese economy, the But it has now dropped in in August.q
