Consumer Confidence News --
Confidence among U.S. consumers fell in October to the lowest level in almost a year, which may temper the biggest part of the economy.
The Thomson Reuters/University of Michigan final index of consumer sentiment decreased to 67.7 from 68.2 in September. Economists had forecast a reading of 68, almost matching the preliminary figure of 67.9, according to the median estimate in a Bloomberg News survey.
A jobless rate projected to stay above 9 percent through next year may restrain consumer optimism and prompt Americans to limit their purchases, which account for 70 percent of the economy. Wal-Mart Stores Inc. and Target Corp. are among retailers using discounts and promotions to lure budget- conscious shoppers during the holidays.
“Main Street doesn’t really believe that the economy is out of a recession until the unemployment rate comes down,” Jonathan Basile, an economist at Credit Suisse in New York, said before the report. “It’s difficult to see any kind of sharp move higher in confidence.”
GDP News --
The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, a sign the expansion is developing staying power. The increase in gross domestic product matched the median forecast of economists surveyed by Bloomberg News and followed a 1.7 percent gain the prior three months.
Earnings at 238 of the 294 companies in the S&P 500 that have reported results since Oct. 7 have beaten analysts’ per- share earnings estimates, according to data compiled by Bloomberg. Analysts surveyed by Bloomberg predict 26 percent growth in third-quarter profit from a year earlier for S&P 500 companies, the fourth straight quarterly increase.
Related Stories
