U.S. Economic News
December 21, 2018
U.S. Economic Indicators
The third estimate of Q3 GDP indicates that the U.S. economy expanded at an annualized rate of 3.4%, slightly below the previous estimate of 3.5%. The reading reflects healthy consumer spending, government spending, and private inventories. BEA Report
The University of Michigan Consumer Sentiment Index rose 0.8 point to 98.3 in the final December reading, and is up 2.4 points on the year. The Index of Consumer Expectations edged down 1.1 points to 87.0, while the Current Economic Conditions Index rose 3.8 points to 116.1. Report
Real disposable personal income rose 0.2% in November while real personal consumption expenditures (PCE) increased 0.3%. The PCE price index inched up 0.1% (up 1.8% Y/Y) and the core price index edged up 0.1% (up 1.9% Y/Y). BEA Report
New orders of manufactured durable goods rose 0.8% in November after falling 4.3% (revised) in October, and are up 8.4% year to date. Excluding transportation, new orders edged down 0.3% (up 7.3% YTD). Census Bureau Report
U.S. News
Kate Davidson of the Wall Street Journal reports that Treasury Secretary Steven Mnuchin said that the market’s reaction to the Fed’s recent rate hike has been overblown and suggested rates may not need to be raised if inflation remains low. Mnuchin stated that markets were disappointed by Fed Chairman Jerome Powell’s comments that the Fed intends to raise interest rates twice next year and will continue shrinking its balance sheet. WSJ