Important economic data shows Trump administration is on track with the business
US economy growth stronger than expected
Economists had generally predicted that this figure would be maintained. In the second quarter of this year, the gross domestic product of the world’s largest economy improved by 2 percent.
The US economy received somewhat stronger support from stock building, while corporate investment fell less sharply than previously thought. Companies have become more cautious with investments due to the trade war between the US and China. Consumer spending, the most important driver of the US economy, remained unchanged.
To support the economy, the Federal Reserve, the American umbrella of central banks, has lowered interest rates three times this year.
US consumer spending is on the rise
Consumer spending in the United States rose by 0.3 percent in October compared to a month earlier. The US Department of Commerce announced this.
In general, economists also expected an increase of 0.3 percent. In September there was an increase of 0.2 percent. The personal incomes of American consumers remained generally stable.
An important inflation component in the spending figure, the so-called Core PCE, amounted to 1.6 percent on an annual basis. The Federal Reserve sees this key figure on inflation as its most important indicator of price development.
Provisional US home sales down
The number of home sales handled in the United States fell by 1.7 percent in October compared to the previous month. The American branch association of brokers has announced this.
Economists generally expected an increase of 0.2 percent. In September these upcoming or provisional home sales also increased by an adjusted 1.4 percent.
Chicago activity is shrinking less
The activity in the industry around the American city of Chicago declined less sharply in November. Market researcher Institute for Supply Management (ISM) announced this.
The purchasing managers’ index, which measures the activity around Chicago, went to 46.3 from 43.2 a month earlier. In general, economists counted on a level of 47 for the index, which at a level higher than 50 indicates growth and below that contraction.
US durable goods orders increased
Orders for durable goods in the United States increased by 0.6 percent in October compared to a month earlier. The US Department of Commerce reported this on the basis of a provisional figure.
Economists generally assumed a decrease of 0.9 percent for orders for goods that last more than three years. In September, those orders were still down by an adjusted 1.4 percent.
Number of unemployment benefits applications in the US declined
The number of first applications for unemployment benefits in the United States fell to 213,000 last week. The US Department of Labor announced this.
Economists assumed an average of 221,000 support applications. A week earlier it concerned a revised 228,000 applications.