Today’s third quarter GDP made a slight push above expectations.
Economists were expecting an increase of 1.8%, the release was 2%. You can throw that on the already massive pile of good Dollar news.
Let me give you a brief summary of what I mean:
Along with a decent looking report for jobless claims, the unemployment rate recent fell to 7.8%, retail sales have been picking up, and durable-good orders jumped 9.9% in the United States. Today, we throw a bullish GDP on there too.
It appears government spending contributed greatly to today’s GDP release. Today we saw the first governemnt spending increase since the 2nd quarter of 2010.
Business spending however doesn’t look as good. For this quarter it is said to be 0.0%, last year at this time it was 18.8% according to Bloomberg. See that report here.
“We are encouraged by the improvement we’re seeing in consumer spending and housing,” said Dean Maki, who is chief U.S. economist in New York for Barclays.
Encouragement is wonderful but the test of time will let us know if this momentum will stick. We could just be seeing a Pre-Presidential Election Blip. The United States Presidential Election will take place in less than two weeks. Don’t forget about Hurricane Sandy. With so much happening at one time, it could affect the markets.
As the market digests all the good U.S. info, the Dollar could see a bullish quarter. I don’t tend to currently believe any bullish momentum will last far into 2013. Things could look different by them though. Go ahead and leave your comments below.
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