Bloomberg Television - US GDP Revised to 3.1% as Jobless Claims Fall
The U.S. economy remains robust, with the GDP's third revision showing a growth of 3.1%, driven by an increase in personal consumption to 3.7%. Initial jobless claims have decreased significantly, indicating a healthy job market. However, there are signs of a manufacturing slowdown, as evidenced by the Philadelphia Fed business outlook and the Empire Index, both showing declines in new orders and shipments. Prices paid have increased, but prices received have halved, highlighting a disparity in cost management. Overall, the economy is in good shape, with personal consumption being a key driver, despite a reduction in inventory levels which slightly detracts from growth.
Key Points:
- U.S. GDP growth revised to 3.1%, driven by personal consumption increase to 3.7%.
- Initial jobless claims dropped by 22,000, indicating a strong job market.
- Manufacturing slowdown noted with declines in the Philadelphia Fed and Empire Indexes.
- Prices paid increased, but prices received fell, indicating cost management challenges.
- Overall, the U.S. economy is strong, with personal consumption as a key growth driver.