WASHINGTON — The U.S. economy grew at a 3.6% annual rate from July through September, the fastest since early 2012. But nearly half the growth came from a buildup in business stockpiles, a trend that could reverse in the current quarter and hold back growth.
The Commerce Department’s second estimate of third-quarter growth released Thursday was sharply higher than the initial 2.8% rate reported last month. And it was well above the 2.5% growth rate for the April-June quarter.
OTTAWA — It may not be smooth sailing after all for the Canadian economy.
Many positive outlooks for growth in 2014 have been buoyed by a stronger-than-expected performance in the third-quarter of last year — along with a pickup in the global economy overall — but some analysts are sounding a more pessimistic tone.
“The consensus view that economic growth will accelerate this year is misplaced,” say economists at Capital Economics.
TORONTO — Toronto ranked as the fastest growing economy in the country last year, but a new study from CIBC suggests Canada’s biggest city will be hard pressed to maintain that growth trajectory.
The report on the economic strength of major Canadian cities, released Thursday, found Toronto ranked tops amongst its peers in the first nine months of 2012, helped by a recovery in the manufacturing sector and a surge in condo sales.
But those two factors could also be significant pressures on future growth in 2013.
WASHINGTON — U.S. employers hired more workers than expected in November and the jobless rate fell to a five-year low of 7.0%, which could fan speculation the Federal Reserve could start reducing its bond purchases this month.
Nonfarm payrolls increased by 203,000 new jobs last month, the Labor Department said on Friday. The unemployment rate dropped three tenths of a percentage point to its lowest level since November 2008 as some federal workers who were counted as jobless in October returned to work after a 16-day partial shutdown of the government.
By Harlan Levy:
Scott L. Wren is a senior equity strategist with Wells Fargo Advisors. Previously he was Senior Equity Strategist with A.G Edwards.
Harlan Levy: Do you think the keys to a U.S. economic recovery are continuing good domestic economic news, no more than a mild recession in Europe, and decent annual growth in China, expected to be around 7 percent?
AS EXPECTED, America's recovery slowed in the first quarter of 2011. At a seasonally adjusted annual rate, real GDP grew by 1.8% in the first three months of the year, down from the 3.1% growth performance in the fourth quarter of 2010, according to the advance estimate of output released this morning. This deceleration came as no surprise; indeed, some recent forecasts projected an even slower rate of growth.