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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (10209)	9/28/2000 9:27:19 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 42834

2Q GDP growth revised up. Final report says economy grew at 5.6% rate, but shows less inflation pressure September 28, 2000: 9:09 a.m. ET NEW YORK (CNNfn) - The nation's economy grew faster than previously estimated in the second quarter, although there was less inflationary pressure than earlier indicated, a government report said Thursday. The Commerce Department's final report on second-quarter gross domestic product said the nation's output of goods and services grew at an annual rate of 5.6 percent, up from a 4.8 percent rise in the first quarter. The previous estimate had been a 5.3 percent growth rate in the broadest measure of the U.S. economy in the quarter, and analysts had expected that number to remain unchanged or rise only 0.1 of a percentage point. The GDP chain deflator, which accounts for prices and is a closely watched inflation indicator, was revised down to a 2.4 percent increase during the quarter in the final report. The previous estimate was for a 2.6 percent increase in the period. The report comes as the Federal Reserve prepares to meet Tuesday to consider its next move on interest rates. The Fed has raised rates six times over the last 15 months in a bid to slow the economy and ward off inflation. While this report is stronger than expected, most analysts expect policy makers at the Fed, the nation's central bank, to leave short-term rates unchanged for their third straight meeting due to signs of slower economic growth, as well as November's presidential election. U.S. stock futures edged lower after the release of the stronger-than--expected GDP number. In a separate report Thursday, first time unemployment claims unexpectedly fell to 287,000 last week from 311,000 the previous week. Analysts surveyed by Briefing.com had forecast that claims would rise to 320,000 last week. In its GDP report, the Commerce Department said the price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 2.1 percent in the second quarter, 0.2 percentage point less than in the preliminary estimate. This index increased 3.8 percent in the first quarter. Excluding volatile food and energy prices, the price index for gross domestic purchases increased 1.7 percent in the second quarter, compared with an increase of 2.8 percent in the first quarter.