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[Bullwinkle]

US GDP grows at higher-than-expected 4.3% in Q3
Wednesday, November 30, 2005 10:23:06 AM ET


NEW YORK, November 30 (newratings.com) – The US Commerce Department reported on Wednesday that the US GDP grew at an annual rate of 4.3% in Q3, ahead of the consensus expectations.

The 4.3% annual GDP growth rate during 3Q05 was the highest in the US since 1Q05. It was also higher than the Wall Street estimate of 4.0%, as consumer spending, construction and business investment were better than expectations during the quarter. The US core consumer price index, which excludes the volatile food and energy prices, rose 1.2% in Q3, which is lower than the initially reported 1.3%. According to Bloomberg, the chief economist of RBS Greenwich Capital, Stephen Stanley, believes that holiday sales in the US would be reasonably healthy. According to Reuters, Patrick Fearon, senior economist at AG Edwards & Sons, said that US GDP growth is likely to slow down significantly during 4Q05, given the ongoing slowdown in the housing market.


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