Economic contraction no reason to panic
The performance in the fourth quarter wasn't good, to be sure. But consumer and business spending rose, and economists say they expect a rebound in the current quarter.
That's good advice when an alien construction crew demolishes your planet to make way for an inter-planetary highway and good advice in these uncertain economic times.
While the country's gross domestic product did contract 0.1% from the third to the fourth quarter in the wake of Superstorm Sandy, the news wasn't all bad. Consumer spending rose 2.6%, an improvement from a gain of 1.6%. Spending by businesses increased by 8.4%, rebounding from a decline of 1.8%.
Though some may blame worries about the fiscal cliff for the economy's disappointing performance, IHS Global Insight chief U.S. economist Nigel Gault isn't so sure.
"The incoming data points to continued growth, and we expect GDP growth to rebound to around 2% in the first quarter," he said in a press release.
Stocks reacted negatively to the GDP figures, which were worse than economists forecasted and marked the first contraction since 2009. Luckily for investors, related data from ADP showed U.S. companies added 192,000 jobs in January, beating expectations of a gain of 165,000, according to Bloomberg.
--Follow Jonathan Berr on Twitter @jdberr.
More on moneyNOW
There are good jobs for the PROPERLY educated. I see it as three problems as I did in the late 90's when my children were in college.
1) The kids today are not thinking seriously about the fact that they are BUYING a degree and what they are actually spending their future money on.
2.) The colleges will sell any degree to make money. They could care less that the student will need that degree to support them through life.
3) College loans are being passed out like free candy and the student isn’t living in reality as to what they are subjecting themselves to.
Copyright © 2014 Microsoft. All rights reserved.
[BRIEFING.COM] The stock market ended the Tuesday session on a lower note after generally upbeat earnings took the back seat to geopolitical concerns. The S&P 500 (-0.5%) and Nasdaq Composite (-0.1%) ended on their lows, while the Russell 2000 (+0.3%) displayed relative strength.
Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities ... More
More Market News
After enjoying a smooth rise in stock prices since May, investors are about to be hit with another bout of volatility.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'