Nov 24: GDP up 2.8% - Economic Highlights

GDP Preliminary Q3 Estimates show GDP increased by 2.8%, less than the expected 2.9% increase, following a 3.5% estimated increase in the advance Q3 estimate (today’s preliminary release is based on a more complete set of data), after contracting by 0.7% in the second quarter of 2009. The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, federal government spending, residential fixed investment, and exports. These gains were partly offset by a negative contribution from non- residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased. The upturn in real GDP in the third quarter primarily reflected upturns in PCE, in private inventory investment, in exports, and in residential fixed investment and a smaller decrease in nonresidential fixed investment that were partly offset by an upturn in imports, a downturn in state and local government spending, and a deceleration in federal government spending.

Corporate profits increased $130.0 billion in the third quarter, compared with an increase of $43.8 billion in the second quarter.  Current-production cash flow, the internal funds available to corporations for investment, increased $41.6 billion in the third quarter, in contrast to a decrease of $30.5 billion in the second.

Consumer Confidence increased to 49.5 in November from 48.7 in October.  Appraisal of present day conditions were unchanged, as the short-term outlook improved slightly and the labor market outlook became less pessimistic.

Upcoming Releases
Initial Claims (11/25 at 8:30 AM EST)
Disposable Personal Income (11/25 at 8:30 AM EST)
Crude Inventories (11/25 at 10:30 AM EST)
Core PCE Inflation (11/25 at 8:30 AM EST)

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