MetroIntelligence Economic Update by P. DUFFY
3Q20 GDP grew at annual rate of 33.1 percent, recapturing 97.3 percent of pandemic decline
Real gross domestic product (GDP) increased at an annual rate of 33.1 percent in the third quarter of 2020, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 31.4 percent. So far the U.S. economy has recaptured 97.3 percent of the GDP level posted in the fourth quarter of 2019, prior to the pandemic.
Initial unemployment claims dip 5.0 percent as continued claims fall 8.4 percent
In the week ending October 24, initial unemployment claims were 751,000, a decrease of 40,000, or 5.0 percent, from the previous week’s revised level. Continued unemployment claims during the week ending October 17 were 7,756,000, a decrease of 709,000, or 8.4 percent, from the previous week’s revised level. The total number of people claiming benefits in all programs for the week ending October 10 was 22,654,453, a decrease
of 415,727, or 1.8 percent, from the previous week.
September pending home sales slip 2.2 percent, but still up 20.5 percent year-on-year
After four straight months of contract activity growth, pending home sales declined slightly in September by 2.2 percent. The Northeast was the only region registering a monthly gain. Nationally, however, contract signings climbed 20.5 percent compared to a year ago. All four regions experienced double-digit year-over-year increases.
Trade deficit declines 4.5 percent in September as exports rise while imports decline
The international trade deficit was $79.4 billion in September, down $3.7 billion, or 4.5 percent, from August. Exports of goods for September were $122.0 billion, $3.2 billion more than August exports. Imports of goods for September were $201.4 billion, $0.5 billion less than August imports.