· Real GDP increased at an annual rate of 3.3% in the third quarter of 2017, according to the “second” estimate by the Bureau of Economic Analysis. In the second quarter of 2017, real GDP increased 3.1%. In the advance estimate, released a month ago, the increase in real GDP was 3.0%.
· Real final sales of domestic product (GDP less change in private inventories) increased 2.5% in the third quarter, in contrast to an increase of 2.9% in the previous quarter.
· Real gross domestic income (GDI) increased 2.5% in the third quarter, compared with an increase of 2.3% (revised) in the second quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.9% in the third quarter, compared with an increase of 2.7% in the second quarter.
· The price index for gross domestic purchases increased 1.8% in the third quarter of 2017, compared with an increase of 0.9% in the previous quarter.
· The personal consumption expenditures (PCE) price index increased 1.5%, compared with an increase of 0.3%. Excluding food and energy prices, the PCE price index increased 1.4%, compared with an increase of 0.9%.
· Profits from current production (corporate profits with inventory valuation adjustment and capital consumption adjustment) increased $91.6 billion in the third quarter, compared with an increase of $14.4 billion in the second quarter. Profits of domestic financial corporations increased $60.6 billion in the third quarter, in contrast to a decrease of $33.8 billion in the second quarter. Profits of domestic nonfinancial corporations increased $12.5 billion, compared with an increase of $59.1 billion. Rest-of-the-world profits increased $18.6 billion, in contrast to a decrease of $10.8 billion.
· Personal income increased $65.1 billion (0.4%) in October according to the Bureau of Economic Analysis. Disposable personal income (DPI) increased $66.1 billion (0.5%) and personal consumption expenditures (PCE) increased $34.4 billion (0.3%). Real DPI increased 0.3% in October and real PCE increased 0.1%. The PCE price index increased 0.1%. Excluding food and energy, the PCE price index increased 0.2%. The PCE price index increased 1.6% from a year ago, while the core (PCE excluding food and energy) price index increased 1.4%.
· The international trade deficit was $68.3 billion in October, up $4.2 billion from $64.1 billion in September, according to the U.S. Census Bureau. Exports of goods for October were $129.1 billion, $1.3 billion less than September exports. Imports of goods for October were $197.4 billion, $2.9 billion more than September imports.
· Retail inventories for October were down 0.1% from September, but were up 2.6% from October 2016.
· Wholesale inventories for October were down 0.4% from September 2017, but were up 4.0% (±0.5 percent) from October 2016.
· October construction spending was up 1.4% from the previous month, and was up 2.9% from a year ago. Residential construction increased 0.4%, while nonresidential construction increased 2.1%. Total private construction increased 0.6% in October, while total public construction increased 3.9%.
· October new home sales increased 6.2% to an annualized rate of 685 thousand units. The October figure was 18.7% above the October 2016 figure. The median sales price of new houses sold was $312.8 thousand, 3.3% above September 2016.
· The Pending Home Sales Index, a leading indicator for the housing sector, increased 3.5% to 109.3 in October, according to the National Association of Realtors. The index is now 0.6% below October 2016.
· U.S. house prices increased 0.3% in September, following a 0.8% increase in the previous month, according to the Federal Housing Finance Agency’s (FHFA). For the 12 months ending in September, U.S. house prices rose 6.3%.
· The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.2% annual gain in September, up from 5.9% in the previous month. The 10-City Composite annual increase came in at 5.7%, up from 5.2% the previous month. The 20-City Composite posted a 6.2% year-over-year gain, up from 5.8% the previous month.
· The results of Freddie Mac’s Primary Mortgage Market Survey showed average mortgage rates moving lower. 30-year fixed rate mortgage averaged 3.90% for the week ending November 30, down from last week when it averaged 3.92%. A year ago at this time, the 30-year rate was 4.08%. 15-year fixed-rate mortgage averaged 3.30%, down from last week when it averaged 3.32%. A year ago at this time, the 15-year rate was 3.34%.
· Mortgage applications decreased 3.1% from a week earlier, according to data from Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending November 24th.
· The advance figure for initial claims for unemployment insurance decreased 2 thousand to 238 thousand in the week ending November 25. The 4-week moving average was 242.25 thousand, an increase of 2.25 thousand from the previous week’s revised average. The advance number for seasonally adjusted insured unemployment (ongoing) during the week ending November 18 was 1,957 thousand, an increase of 42 thousand from the previous week’s revised level. . The 4-week moving average was 1,911 thousand, an increase of 18.25 thousand from the previous week’s revised average.
· Unemployment rates were lower in October than a year earlier in 341 of the 388 metropolitan areas, higher in 33 areas, and unchanged in 14 areas, according to the U.S. Bureau of Labor Statistics. Seventy-four areas had jobless rates of less than 3.0% and two areas had rates of at least 10.0%. Nonfarm payroll employment increased over the year in 307 metropolitan areas, decreased in 74 areas, and was unchanged in 7 areas.
· The Conference Board Consumer Confidence Index, which had improved in October, increased further in November. The Index now stands at 129.5 (1985=100), up from 126.2 in October. The Present Situation Index increased from 152.0 to 153.9, while the Expectations Index rose from 109.0 to 113.3.
· The Institute for Supply Management’s (ISM) manufacturing survey indicated that the manufacturing sector expanded in November, and the overall economy grew for the 102nd consecutive month.