The Commerce Department reports that gross domestic product grew at a 2.9% annual pace in the third quarter. That matched economists’ expectations. That’s a big improvement from the first half of the year when the U.S. grew just barely over 1%. The driver behind the improved performance was a 10% spike in exports, helped by a temporary boom in U.S. soybean shipments after a poor harvest in South America. Some of those gains are expected to unwind in the fourth quarter. Imports also rose, but by a smaller 2.3%. A smaller trade deficit boosts GDP.
The Commerce Department also reported the cost for businesses to employ workers rose 0.6% in the third quarter, as benefits advanced at the fastest pace in two years. Economists surveyed by MarketWatch had expected that seasonally adjusted 0.6% increase in the employment cost index. It has increased 2.2% in the past 12 months.Wages were up 0.5%. They represent about 70% of a company’s cost to employ its workers. Benefits rose an even faster 0.7%, for the biggest increase in two years most due to health-care expenses.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
