Daily Economic Update for October 29, 2010: GDP and Consumer Sentiment

1. Daily Economic Update
 Third quarter GDP expanded at a 2.0 percent annualized pace, following a 1.7 percent increase in
the second quarter. This marks the fifth consecutive quarter of real GDP growth.
 Gains were seen in inventory investment, consumer spending, equipment investment, and
government purchases. The highest gain was in personal consumption expenditures (PCEs). PCEs
were the strongest since late 2006.
 However, the economy remains soft as it is below 3 percent historical average and much below 4 to
5 percent that would be expected coming out of the recession. The unemployment rate will remain
elevated near 10 percent for a while.
 Consumer sentiment fell to 67.7. There will not be any meaningful increase until the economy
improves vigorously.
 Usually after an election, consumer sentiment rises. The majority of people got their desired
result. So there could be an improvement in the next month’s data.
Produced by NAR Research
October 29, 2010