U.S. ISM manufacturing PMI expands to 51.9 in October

WASHINGTON—A gauge of U.S. factory activity rose in October, a sign the manufacturing sector could be stabilizing after two years of challenging conditions. The Institute for Supply Management on Tuesday said its purchasing manufacturers’ index rose to 51.9 in October from 51.5 in September. A reading above 50 indicates that factory activity is growing, while a reading under 50 signals contraction…

Atlanta Fed cuts U.S. GDP forecast from 2.7% to 2.3% in the fourth quarter

The U.S. economy is on track to grow at a 2.3 percent annualized pace in the fourth quarter on expected lower consumer spending and overall investments, the Atlanta Federal Reserve’s GDP Now forecast model showed on Tuesday. The latest fourth-quarter GDP estimate was lower than the 2.7 percent increase calculated on Monday, the Atlanta Fed said on its website…

Fed expected to set the stage for December rate hike amid signs the economy is strengthening

The U.S. Federal Reserve is expected to keep interest rates unchanged on Wednesday but set the stage for a hike in December amid signs the economy is picking up steam. The central bank has grown increasingly confident about raising rates and Chair Janet Yellen said in September that a move before the end of the year was likely should employment and inflation continue to strengthen…

U.S. consumer spending up 0.5% in September after dipping 0.1% in August

U.S. consumer spending rose more than expected in September as households boosted purchases of motor vehicles and inflation increased steadily, which could bolster expectations of an interest rate hike from the Federal Reserve in December. The Commerce Department said on Monday that consumer spending, which accounts for about 70 percent of U.S. economic activity, increased 0.5 percent after dipping 0.1 percent in August…

Eurozone Q3 economic growth unchanged at 0.3% despite Brexit

The eurozone’s economy eked out another quarter of modest growth in the three months to September, shrugging off the U.K.’s surprise decision to leave the European Union, but adding to concerns about its future ability to deliver prosperity. The EU’s statistics agency Monday said the combined economic output of the currency area’s 19 members grew at an annualized rate of 1.4%, well below the 2.9% recorded by the U.S. and the 2.0% recorded by the U.K. during the same period…

U.S. employment cost index increases 0.6% in third quarter

U.S. labor costs maintained a steady pace of increase in the third quarter, showing little signs of a significant pickup in wage inflation. The Employment Cost Index, the broadest measure of labor costs, increased 0.6 percent after a similar gain in the second quarter, the Labor Department said on Friday. That left the year-on-year rate of increase at 2.3 percent…

U.S. new home sales up 3.1% in September

New U.S. single-family home sales unexpectedly rose in September, pointing to sustained demand for housing even as data for the prior three months were revised lower. Other reports on Wednesday suggested a stronger pickup in economic growth in the third quarter than is currently anticipated. The goods trade deficit narrowed sharply, while both wholesale and retail inventories increased in September…

UK GDP grew 2.3% in third quarter, up 0.5% since Brexit vote

Whoa. That’s what you call resilience. The U.K. economy grew 2.3% in the third quarter, confounding forecasts that it would slump after the Brexit vote.
Quarter on quarter, GDP grew 0.5%. That’s weaker than the second quarter, but nowhere near as bad as expected. The Bank of England was expecting growth of between 0.2% and 0.3% in the July to September period…

U.S. consumer confidence retreats to 98.6 in October

Americans took a dimmer view of the economy this month, the latest sign that households remain cautious as economic growth lags behind this year and the presidential election nears. The Conference Board said Tuesday its index of consumer confidence dropped to 98.6 in October from 103.5 in September. Economists surveyed by The Wall Street Journal […]

U.S. home prices rise 5.1% in August; consumer confidence slips

U.S. home prices rose 5.1 percent in the year to August as home buyers competed for fewer properties, helped by low mortgage interest rates, some wage growth and low unemployment. The S&P CoreLogic Case-Shiller report published on Tuesday said its 20-city index was up 5.1 percent, after a rise of 5.0 percent in the year […]

U.S. jobless claims climbed last week after Hurricane Matthew lashed the Southeast

U.S. home resales surged in September after two straight months of declines as first-time buyers stepped into the market, pointing to underlying momentum in the economy. While other data on Thursday showed a bigger-than-expected increase in the number of Americans filing for unemployment benefits last week, the trend continued to suggest that the labor market remains strong…

UK’s cost of living to increase noticeably over next 12 months, peak over 3%

The rise in the annual inflation rate to 1% last month is just the start. The cost of living in Britain is certain to increase noticeably over the next 12 months and likely to peak at about 3%, perhaps even a bit higher. A bit of perspective is needed. By Britain’s recent standards, inflation is still low. Harold Wilson could only dream of 1% inflation when prices were shooting up at an annual rate of almost 26% in 1975…

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