Mixed signals from latest US figures
Friday, 21 December 2001The University of Michigan consumer sentiment index has risen to 88.8 in the final December reading from 85.8 in the preliminary reading.
The upward revision was larger than expected. The consensus forecast of Wall Street economists was for consumer sentiment to rise to 86 in the final December index reading. The final November confidence reading was 83.9.
Earlier, US government figures had shown that the US economy contracted at a 1.3% annual rate in the third quarter, down from an earlier estimate of a 1.1% decline.
The Commerce Department report was the third and final estimate of US gross domestic product in the three months to September 30. It was the largest quarterly decline in GDP since the first quarter of 1991.
The downward revision was due to weaker government spending and fewer exports than previously estimated.
The report did not change the fundamental picture of the third quarter where weak business investment and a record decline in inventories offset a small gain in consumer spending.
The first estimate of fourth quarter GDP will be released on January 30, and most economists expect a negative growth rate to continue.
