Nation & World News

U.S. Economy Grew At 3.6 Percent In Third Quarter; Jobless Claims Dip

By Bill Chappell on December 5th, 2013

The U.S. economy grew at an annual rate of 3.6 percent in the third quarter, according to data released Thursday by the Bureau of Economic Analysis. That’s a rise from the second quarter, when the real gross domestic product tallied a 2.5 percent gain.

The pace of growth is the fastest since the first quarter of 2012, which clocked in at 3.7 percent.

Thursday’s release is the “second” estimate for the third quarter, following up on data released in November that put the GDP’s increase at 2.8 percent.

But the increase belies some potentially troubling signs. As The Associated Press notes, “Almost the entire third-quarter revision was due to a big jump in stockpiles. Consumer spending, the lifeblood of the economy, was the weakest in nearly four years.”

It adds:

“When excluding inventories, the economy grew at a 1.9 percent rate in the third quarter, down from 2.1 percent in the spring. That’s in line with the same subpar rate that the economy has seen since the Great Recession ended four years ago.”

Other factors in the revision included a rise in imports that was smaller in the third quarter than in the second, as well as an increase in spending by state and local governments.

In other economic news, the number of people filing first-time claims for unemployment insurance fell below 300,000 last week, to 298,000, the Employment and Training Administration said Thursday.

The agency says the seasonally adjusted data reflect “a decrease of 23,000 from the previous week’s revised figure of 321,000.”

As was the case after cheery U.S. economic news about hiring and international trade emerged earlier this week, the stock market seems to be set for another dismal day, as the increases drive investors to fear that the Federal Reserve might consider tapering its monthly stimulus spending that was meant to prop up the economy.

“The markets are worried about the fact that strong numbers from the States could perhaps spark tapering in December,” Julian Chillingworth, chief investment officer at Rathbone Brothers in London, tells Bloomberg.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

This entry was posted in News from NPR. Bookmark the permalink.

Comments are closed.

 

More Stories in News from NPR

Clerical Error Puts Church On New York’s ‘George Carlin Way’

The street named after the late comedian, who was known for his blistering attacks on religion, ended up being a block longer than city officials intended.


Signs Emerge Of A Compromise On Obama’s $3.7B Immmigration Request

The president wants the money to deal with the thousands of minors from Central America who have crossed into the U.S. Republicans said they want some policy changes; Democrats aren’t opposed.


No Charges For Police Who Killed Woman After D.C. Chase

Miriam Carey, 34, was fatally shot by two police officers last fall after she led them on a high-speed pursuit from the White House to the U.S. Capitol.


Eileen Ford, center, winner of the Woman of the Year In Advertising 1983 award smiles with two of her famous models Cheryl Tiegs, left, and Christina Ferrare, in New York. Ford died on Wednesday at age 92.

Eileen Ford, Creator Of The Supermodel, Dies At 92

As co-founder of the Ford modeling agency, she was instrumental in promoting such superstars as Lauren Hutton and Christie Brinkley.


Senate Intelligence Committee Chairwoman Dianne Feinstein alleged in March that the CIA violated federal law by searching computers used by her staff. On Thursday, the Justice Department declined to bring criminal charges against anyone at the CIA or the Senate panel.

No Criminal Charges In Senate-CIA Spat, Justice Department Says

The decision brings a muted end to a power struggle that had undermined relations between the intelligence community and the Senate Intelligence Committee.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Day Sponsorship Payments
Underwriting Payments