Economy Sees Growth, Durable Goods on the Rise, Jobless Claims Decrease

Economy Weekly - Week of October 25, 2010

“Spending by U.S. consumers, the largest component of GDP, spurred the uptick, rising in the third quarter to a 2.6 percent annual rate. The numbers also got a boost from business investment, federal government spending and businesses building inventories.”

Economy Highlights

• On Friday, the Commerce Department announced that the economy grew at two percent during the third quarter. “Consumers helped boost last quarter's economic growth with 2.6 percent growth in spending. That was better than the second quarter's 2.2 percent growth rate and marked the biggest quarterly increase since a 4.1 percent gain at the end of 2006 before the recession hit.” [Washington Post, 10/29/10]
• On Wednesday, the Commerce Department reported that durable goods rose 3.3 percent in September. “Overall, it was the best showing since January.” [Washington Post, 10/28/10]
• Claims for unemployment benefits decreased last week, according to the Labor Department. “Initial unemployment claims declined by 21,000 to 434,000 in the week ended Oct. 23 … That brings claims down to levels last seen since the week ended July 10. Economists surveyed by Dow Jones Newswires had expected claims would rise slightly by 3,000.” It was also reported that the number of continuing claims declined by 122,000 to 4,356,000, which is the lowest level since November 2008. [Wall Street Journal, 10/28/10]

Recovery Highlight

• As the Obama Administration prepares to release $20 billion in Recovery Act funds for modernization of health care records in 2011, one of the nation’s largest electronic prescription providers, Surescripts, is launching an online network that allows physicians to access electronic health care records. “A statute in the American Recovery and Reinvestment Act mandated that by 2014 every person should have an electronic medical record. To meet that lofty goal, the federal government has set aside roughly $20 billion to be released in 2011 as incentive payments to doctors and hospitals that implement eligible electronic record systems.“ [Washington Post, 10/25/10]