Gross Domestic Product surged in 3rd Quarter, Consumers confident post election, Home price gains remained steady in September
November 29, 2016
After weak economic growth to begin 2016, the Bureau of Economic Analysis reported that the second reading of third quarter Gross Domestic Product surged ahead by 3.2%, the fastest pace in two years. The 3.2% was above the first reading of 2.9% and just above the expected 3.0%. Within the report it showed that consumer spending rose by 2.8%, above the original estimate of 2.1%. In addition, business investment rose sharply by 10.1%, well above the first reading of 5.4%. Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. It is considered the broadest measure of economic activity.
Consumers across the nation felt extremely confident in November ahead of the presidential election and were not impacted by the outcome of the results. Consumer Confidence surged ahead to 107.1, the best reading since the recession ended some time in late 2009 and well above the 100.0 expected. Within the report, all of the key metrics improved. “Consumer confidence improved in November after a moderate decline in October, and is once again at pre-recession levels. With the holiday season upon us, a more confident consumer should be welcome news for retailers,” said Lynn Franco, Director of Economic Indicators at The Conference Board.
Home price gains remained steady in September as prices in September were 0.1% above the July 2006 peak, reports the S&P CoreLogic Case-Shiller U.S. National Home Price Index. Within the report it showed that the 20-city Index saw a 5.1% annual gain. Gains in the West led the charge with Seattle seeing an 11% gain compared to a year ago. Portland came in second with a 10.9% rise annually.
