Separately, the Commerce Department said U. While businesses continued to whittle down their inventories, the pace at which they liquidated stocks slowed sharply from the second quarter, adding nearly 0.
Growth was boosted by government stimulus, including the popular cash for clunkers program and a tax credit for first-time home buyers. The median home price fell 4. Most people are looking now for 3. But debate continues over the sustainability of the recovery once government support wanes.
A separate report from the U. Ford Motor Co F. In addition, nonresidential building activity dropped While the expansion in GDP in the July-September period was not as vigorous as had been thought, it was still the fastest pace since the third quarter of and ended four straight quarters of declining output.
Consumer spending was revised down slightly, to a 2.
However, recent data, including retail sales, business inventories and trade figures, strongly indicate the pace of growth has gained speed in the fourth quarter.
The Dow Jones home construction index. While the economy has turned the corner, the effects of the recession continue to reverberate. Even more heartening, the decline in home prices is fading.
SPX closing at its highest level in 14 months [. It was the smallest drop since November They hope an improving market will lift the spirits of households hit by the highest unemployment in a quarter century and encourage them to spend.
The National Association of Realtors said on Tuesday that existing home sales rose 7. Federal Housing Finance Agency showed home prices rose 0. Economists had thought the final estimate of GDP, which measures total goods and services output within U.
The deep inventory cuts of the recent quarter should lay the groundwork for a pickup in production. A widening trade gap also weighed on growth.However, revisions to December data on construction spending, factory orders and wholesale inventories have suggested the fourth-quarter growth estimate could be raised to a percent pace.
We will write a custom essay sample on WRAPUP 1 Bullish U.S. manufacturing construction data bolster growth outlook specifically for you We will write a custom essay sample on WRAPUP 1 Bullish U.S. manufacturing construction data bolster growth outlook specifically for you.
for only $ $/page.
Order now. Search. The reports came on the heels of bullish data on the labour market, manufacturing and housing. Growth estimates for the October-December quarter are currently as high as a % annualised pace.
The economy grew at a % rate in the third quarter. Separately, the S&P CoreLogic Case-Shiller composite home price index of 20 U.S.
metropolitan areas rose percent in December from a year ago after increasing percent in November. Dec 22, · * U.S. existing home sales highest in nearly three years * Economy grew at pct rate in Q3, less than expected * Weak business investment holds back growth. Washington: US manufacturing activity increased to its highest level in nearly /2 years in August and construction spending rebounded strongly in .Download