Page 3 - Us Economic Growth

US economy has grown at solid pace again last quarter despite high rates

Powered by consumer spending, the U.S. economy likely kept expanding at a healthy pace from July through September despite the pressure of still-high interest rates. The Commerce Department is expected to report Wednesday that the gross domestic product the economy's total output of goods and services grew at a 2.6% annual pace last quarter, according to a survey of forecasters by the data firm FactSet. That would be down from a 3% annual rate in the April-June period. But it would still amount to a solid pace as Americans ponder the state of the economy in the final stretch of the presidential race. Wednesday's report is the first of three estimates the government will make of GDP growth for the third quarter of the year. The U.S. economy, the world's biggest, has shown surprising resilience in the face of the much higher borrowing rates the Federal Reserve imposed in 2022 and 2023 in its drive to curb inflation. Despite widespread predictions that the economy would succumb to a .

Experts warn Trump's economic plans could fuel higher inflation rates

With characteristic bravado, Donald Trump has vowed that if voters return him to the White House, inflation will vanish completely". It's a message tailored for Americans who are still exasperated by the jump in consumer prices that began 3 1/2 years ago. Yet most mainstream economists say Trump's policy proposals wouldn't vanquish inflation. They'd make it worse. They warn that his plans to impose huge tariffs on imported goods, deport millions of migrant workers and demand a voice in the Federal Reserve's interest rate policies would likely send prices surging. Sixteen Nobel Prize-winning economists signed a letter in June expressing fear that Trump's proposals would reignite' inflation, which has plummeted since peaking at 9.1 per cent in 2022 and is nearly back to the Fed's 2 per cent target. Last month, the Peterson Institute for International Economics predicted that Trump's policies would drive consumer prices sharply higher two years into his second term. Peterson's analysi

US inflation likely cooled again last month in sign of healthy economy

US inflation last month likely reached its lowest point since February 2021, clearing the way for another Federal Reserve rate cut and adding to the stream of encouraging economic data that has emerged in the final weeks of the presidential campaign. The consumer price index is expected to have risen just 2.3% in September from 12 months earlier, down from the 2.5% year-over-year increase in August, according to economists surveyed by FactSet, a data provider. A reading that low, likely reflecting lower gas prices and only a slight rise in food costs, would barely exceed the Fed's 2% inflation target. A little over two years ago, inflation had reached a peak of 9.1%. Measured month over month, consumer prices are thought to have risen a scant 0.1% from August to September, down from a 0.2% increase the previous month. The improving inflation data follows a mostly healthy jobs report released last week, which showed that hiring accelerated in September and that the unemployment rate

Bidenomics under scrutiny: Will economic populism win US votes?

The interventionist, anti-trade, and anti-finance policies of the US administration haven't helped the vice-president's campaign

US Fed rate cut unlikely to impact foreign inflows to India: DEA secretary

The US Federal Open Market Committee on Wednesday reduced the lending rate to 4.75-5.00 per cent from 5.25-5.50 per cent, a larger than expected cut

Asian shares try to stabilise after global sell-off, US data in focus

Oil prices were steady in early trading after dropping in the previous sessions on weak demand and supply woes

Govt bond yields seen steady ahead of state debt sale, US economic data

The market is closely watching key US data and Federal Reserve's rate action as these will be directional cues

US business inventories marginally up by 0.3% in Jun after 0.5% rise in May

Inventories increased 2.1 per cent year-on-year in June

Is the US heading towards recession? What RBI Governor Shaktikanta Das said

The RBI MPC on Thursday decided to keep its repo rate unchanged at 6.5 per cent for the ninth consecutive time, RBI Governor Shaktikanta Das announced

Crude Oil prices down 9% in 5 weeks on growth worries; outlook stays tepid

The overall sentiment in oil remains bearish and we expect prices to see further sell towards the support of $70 and $68 per barrel, says Mohammed Imran of Sharekhan by BNP Paribas.

US service sector rebounds in July, employment market also recovers

ISM's measure of services employment increased to 51.1 - growing for the first time since January - from 46.1 in June, second-largest in more than three years

Oil prices settle at 8-month low after disappointing US job numbers

US job growth slowed more than expected in July and unemployment increased to 4.3 per cent, pointing to raising fears of a possible recession

US unemployment rate hits 4.3% in July as job growth slows considerably

The employment report also showed increase in annual wages last month was smallest in more than three years, effectively sealing the case for the U.S. central bank to cut interest rates in September

US economic growth seen picking up in 2nd quarter, inflation subsiding

The economy, which continues to outperform its global peers despite hefty rate hikes from the Fed in 2022 and 2023, remains supported by a resilient labor market even as the unemployment rate has rise

Trump's economic plans include proposed tariffs, tax cuts, no taxes on tips

The first night of the Republican National Convention kept its official focus on the economy Monday even after Saturday's shooting at a rally in Pennsylvania in which former President Donald Trump was injured. Speakers argued that Trump would fix inflation and bring back prosperity simply by returning to the White House as president. Virginia Governor Glenn Youngkin lamented, Tonight, America, the land of opportunity, just doesn't feel like that anymore. But Trump has released few hard numbers and no real policy language or legislative blueprints, and most of the speakers Monday didn't get into details either. Instead, his campaign is betting that voters care more about attitude than policy specifics. Trump says he wants tariffs on trade partners and no taxes on tips. He would like to knock the corporate tax rate down a tick. The Republican platform also promises to defeat inflation and quickly bring down all prices, in addition to pumping out more oil, natural gas and coal. The ..

US economic growth for last quarter expanded slightly to 1.4% annual rate

The American economy expanded at a 1.4 per cent annual pace from January through March, the slowest quarterly growth since spring 2022, the government said Thursday in a slight upgrade from its previous estimate. Consumer spending grew just 1.5 per cent, down from an initial estimate of 2 per cent in a sign that high interest rates may be taking a toll on the economy. The Commerce Department had previously estimated that the gross domestic product the economy's total output of goods and services advanced at a 1.3 per cent rate last quarter. The first quarter's GDP growth marked a sharp pullback from a strong 3.4 per cent pace during the final three months of 2023. Still, Thursday's report showed that the January-March slowdown was caused mainly by two factors a surge in imports and a drop in business inventories that can bounce around from quarter to quarter and don't necessarily reflect the underlying health of the economy. Imports shaved 0.82 percentage point off first-quarter

Fitch ups 2024 world growth forecast to 2.6%; cautions on inflation

However, for 2025, Fitch expects world growth to edge down to 2.4 per cent as US growth slows to a below-trend rate of 1.5 per cent and growth in the Eurozone picks up to 1.5 per cent

US job growth to remain at moderate pace in May, wage gains hold steady

The Labour Department's closely watched employment report on Friday is also expected to show the unemployment rate remained below 4 per cent for the 28th straight month

Gold prices firm on Fed rate cut hopes; investors await more US data

Spot gold was up 0.2% at $2,331.84 per ounce as of 09:49 a.m. ET (1349 GMT), after posting a 2% gain last month. Prices hit an all-time high of $2,449.89 on May 20

Considerable uncertainty persists in US economic outlook: Candace Browning

Browning elaborates on the implications of US growth for financial markets