US business investment rises 16.3 per cent
Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.
Friday 28 October 2011
The world's largest economy expanded strongly in the third quarter, as businesses invested and consumers hit the shops after a long period of caution.
US GDP in the three months to the end of September accelerated to an annualised rate of 2.5 per cent, after scraping just 0.4 per cent and 1.3 per cent in the first and second quarters, respectively. The brightest spot was a surge in business investment, which is running at a 16.3 per cent annualised rate, which suggests that corporate managers are finally optimistic enough to spend after a long period of caution – or that they can put off vital investment no longer. The 16.3 per cent figure was up from 10.3 per cent in the second quarter.
The GDP figures added to the buoyancy of financial markets. Some economists were more circumspect.
Katy Bostjancic of the Conference Board, which measures consumer confidence, believes the figures show "an unsustainable spurt". She said: "Continued woes in the housing market are overshadowed by consumer concern over the anaemic labour market, as highlighted by the decline in consumer sentiment back to 2008 levels. Weak sentiment could limit the rise in consumption through the holiday season."
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
- 3 Brazil vs Germany World Cup 2014: In defence of Mesut Ozil - the Arsenal midfielder works magic in the shadows
- 4 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 5 Tony Abbott embarrasses Australia by praising Japanese WWII military, ‘getting on the sake’ and posing for ‘crotch-shot’ photo opportunity
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Gingers face extinction due to climate change, scientists warn
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
Vanessa Feltz criticises 'vile' reaction to Rolf Harris allegations
iJobs Money & Business
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£60000 per annum: Harrington Starr: A leading provider in investment managemen...
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...
£30000 per annum: Harrington Starr: A global leader in trading platforms and e...