Weekly Economic Update: September 24-28, 2012

Oct 02 2012

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Third quarter GDP growth was revised downwards to 1.3%. Personal income increased 0.1% in August as spending rose 0.5%. Durable orders dropped 13.2% in August. The Case-Shiller home price index was up 0.4% in July. New home sales were flat in August while pending home sales fell 2.6%. Initial jobless claims declined 26,000 to 359,000 for the week ended 9/22.

• Second quarter GDP growth was revised downwards to a real, annual rate of 1.3%, from a previously reported 1.7%. First quarter GDP growth was 2.0%. The downward revision to GDP was the result of lower than previously reported private inventory investment, personal consumption expenditures, and exports.

• Personal income edged up 0.1% in August as personal spending increased 0.5%.

• Durable orders unexpectedly plummeted 13.2% in August. Excluding the large decline in transportation, orders were down 1.6%. This marks the largest decline in durable orders (those meant to last 3 years or more) since January 2009, in the midst of the recession. The report also included a further decline in shipments of durable goods, which suggests continued weak GDP growth in the 3rd quarter.

• The Case-Shiller home price index was up 0.4% for the month of July, and up 1.2% from a year ago. The DC component of the index was up 0.5% in July and up 3.6% from a year ago.

• New home sales were essentially unchanged at an annual rate of 373,000 units in August.

• Pending home sales were unexpectedly fell 2.6% in August.

• Initial jobless claims dropped 26,000 to a level of 359,000 for the week ended September 22nd.


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