Investing.com – A group of important economic data was released recently that shed light on the health of the US economy and its path in the coming period. This data includes levels of new unemployment claims, which reflect the performance of the labor market. Gross domestic product figures have also been published, which give a broad picture of the pace of economic growth.
EGY, a broad measure of goods and services produced from July to September, rose 2.8% in the second quarter, according to the US Commerce Department’s Bureau of Economic Analysis. The previous reading had shown an increase of 3% in the second quarter.
While the Ministry of Labor revealed on Thursday that it went down to 213 thousand seasonally adjusted applications from 215 thousand. Economists had expected 215,000 applications to be filed last week.
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Unemployment data
The number of Americans filing new claims for unemployment benefits fell again last week, but many laid-off workers are facing long periods of unemployment. employment, keeping the door open for another interest rate cut by the Federal Reserve in December.
Initial jobless claims in states fell by 2,000 to a seasonally adjusted 213,000 for the week ending Nov. 23, the Labor Department said Wednesday. The report was released one day early because of the Thanksgiving holiday on Thursday.
Economists had expected 215,000 claims last week. Orders are down from a year-and-a-half high in early October, which was due to hurricanes and strikes at Boeing (NYSE:).
They are now at levels consistent with a decline in layoffs and a rebound in hiring in November. In October, storms and a seven-week strike at Boeing ended the increase in nonfarm payrolls to just 12,000 jobs.
The claims report showed that the number of people receiving benefits after a week of initial aid, an indicator of employment, rose by 9,000 to 1.907 million people after seasonal adjustment in the week ended November 16.
The so-called continuous high demands indicate that many workers who have been laid off are finding it difficult to find new jobs.
The rolling claims data covered the period in which the government surveyed households for the unemployment rate in November. The unemployment rate has been stable at 4.1% for two consecutive months. November’s earnings report will be key to the US central bank’s decision on interest rates in mid-December.
Most economists believe that there is no certainty in cutting interest rates next month, amid signs that the trend of inflation is slowing down.
Minutes from the Federal Reserve’s Nov. 6-7 monetary policy meeting released Tuesday showed that officials appeared divided on the extent to which interest rate cuts were needed. The US Federal Reserve cut borrowing costs by 25 basis points earlier this month, lowering its overnight interest rate to a range of 4.50%-4.75%.
The US central bank began easing policy in September, after raising interest rates in 2022 and 2023 to combat inflation.
Information on economic growth
The US economy expanded at a strong annual rate of 2.8% from July to September thanks to strong consumer spending and rising exports, the US government said on Wednesday, dropping its first estimate for growth in the third quarter unchanged.
The Commerce Department reported that growth in US GDP – the gross domestic product of goods and services – slowed from the 3% rate in April and July.
But the GDP report showed that the US economy – the largest in the world – is surprisingly stable. Growth has exceeded 2% in eight of the last nine quarters.
However, American voters – frustrated by high prices – were not impressed by the stable growth and this month they chose to return Donald Trump to the White House to reform the country’s economic policies. He will have the support of the Republican majority in the House of Representatives and the Senate.
Consumer spending, which accounts for about 70% of US economic activity, accelerated to an annual pace of 3.5% in the latest quarter, up from 2.8% in the April-June period and the fastest growth since the first quarter of 2023. Exports also contributed to growth in the third quarter It increased by 7.5%, which is the most in two years. However, third-quarter growth in consumer spending and exports was lower than the Commerce Department had originally estimated.
Gold and dollars now
It is now up 1.16% to $2,676 an ounce.
While it rose about 0.72% to $2652 per ounce.
On the other hand, contracts fell 0.74% to a level of 106.18 points.
2024-11-27 13:38:00
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