- Brian Jones, a senior U.S. economist at Societe Generale
The world's biggest economy continue gaining momentum in the third quarter, as a narrowed trade gap and gains in inventory overshadowed a limited gain in consumer spending. The report made by the Commerce Department showed that the U.S. expanded at a 2.7% annual rate, up from 2% in the prior quarter, helped by strong exports. At the same time, the growth reached the highest level since the fourth quarter of 2011, however, it can hardly be interpreted as a sign of strength, as the lift from inventories is likely to be lost in the fourth quarter.
"We're just muddling through," said Brian Jones, a senior U.S. economist at Societe Generale in New York. "The mix between final demand and inventories was far less favorable. The consumer spending numbers are a reflection of the fact that job growth remains sluggish."
Also Thursday, the U.S. Department of Labor said that the number of people who applied for U.S. jobless benefits fell sharply for the second straight week in the week ended November 17, as the effects of Hurricane Sandy continued to fade. Initial applications for unemployment benefits declined 23,000 to 393,000, down from 416,000 in the preceding week. The four-week moving average edged higher 7,500 to 405,250.
© Dukascopy Bank SA