data sparks doubts on economic momentum
consumer spending growth canadagoosejacket-outlet slowed in October and business capital investment plans were weak, raising questions about expectations for solid economic performance in the fourth quarter.
Other data on Wednesday offered a more optimistic outlook, with household income Canada Goose Outlet registering Canada Goose Online the largest rise in in seven months and first time canada goose outlet store locations claims for jobless benefits remaining in a canada goose outlet toronto factory range that hinted at improving labor market conditions.
Despite the mixed data, economists said it still appeared the economy was accelerating after growing at a 2 percent annual rate in the third quarter.
are still comfortable with our 3 percent (fourth quarter) growth forecast, but our confidence is not as strong as it cheap Canada Goose otherwise would have been, said Millan Mulraine, a senior macro strategist at TD Securities in New York. recovery canada goose clearance sale came shortly after data showed China once booming factory sector shrank at its fastest pace in 32 months in November and the euro zone canada goose clearance private sector contracted for a third month. stocks ended down for a sixth straight day on the Chinese data and after Canada Goose Parka a weak government bond auction in Germany sparked fears that the European debt crisis was threatening canada goose black friday sale even Germany, the euro zone strongest economy. Treasury debt rose, pushing the benchmark yield to a seven week low. The dollar Canada Goose sale rallied against a basket of currencies. Commerce Department said consumer spending edged up 0.1 percent, a sharp slowdown from a 0.7 percent canada goose coats on sale increase in September as households took advantage canada goose deals of the largest increase in income since March to rebuild their savings.
Inflation adjusted spending also nudged up 0.1 canada goose store percent last month, pointing to a loss of momentum after a relatively strong third quarter, when spending grew at an annual rate of 2.3 percent.
The department said in another report that non defense capital goods orders excluding aircraft a closely watched proxy for business spending fell 1.8 percent last month. That was the largest decline since January.
Though this category normally declines in the first month of the quarter, a downward revision in the September figure to show only a 0.9 percent rise raised concerns that businesses were cutting back spending. economy and discouraging businesses from making more investments.
may. Canada Goose Coats On Sale be seeing some caution seeping into business risk taking on the heels of developments in Europe and Canada Goose Jackets Washington, said Michael Feroli, 2018 canada goose outlet an buy canada goose jacket cheap economist at JPMorgan in New York.
Feroli added that a business tax break due to expire at year end may have pulled forward some spending and that impact could be fading.
Spending on capital equipment has been one buy canada goose jacket of the major pillars of the recovery. Feroli estimates it accounted for more than a third of canada goose overall economic growth since the end of the 2007 09 recession.
Shipments on non defense capital goods orders excluding aircraft, which go into the calculation of gross domestic product, fell 1.1 percent last month after declining 1.0 percent in September.
But it was not all doom and gloom.
Although the Labor Department reported initial claims for state unemployment benefits rose 2,000 to 393,000 last week, they remained below canada goose coats 400,000 for a third straight week, a level that economists view as a sign of some healing in the jobs market.
In addition, a four week moving average of claims that is considered a better measure of labor market trends fell to its lowest canadian Followers us goose jacket level since April. CONSUMER SPIRITS RISE The improving labor market tone has helped consumer confidence to perk up slightly.
The Thomson Reuters/University of Michigan gauge of consumer sentiment rose to 64.1 this month from 60.9 in October. It was little changed from Canada Goose online a preliminary reading of 64.2 early in the month.
That, combined with October 0.4 percent increase in income, gave some economists reason to be optimistic that growth would still top a 3 percent annual pace in the current quarter.
you want to look at future spending, you look at income, TD Securities Mulraine said. the income side, things are looking up for the households. Of course, they seem to be saving for canada goose replica the rainy day, which is not a bad thing.
Taking inflation into account, after tax income rose 0.3 percent, the largest increase since October 2010, after a decline of 0.1 percent in September.