It’s like a report card for the economy. Late last month, the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department released the latest information on our country’s gross domestic product (GDP) growth for the three months ended in September.  #-ad_banner-#As with all economic report cards, investors await this report eagerly and read it closely, looking for clues about the nation’s economic health. Of course, the main idea is to give us a sense of how fast the economy can grow and whether it’s been doing better or worse than in previous quarters and years. But investors also look… Read More

It’s like a report card for the economy. Late last month, the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department released the latest information on our country’s gross domestic product (GDP) growth for the three months ended in September.  #-ad_banner-#As with all economic report cards, investors await this report eagerly and read it closely, looking for clues about the nation’s economic health. Of course, the main idea is to give us a sense of how fast the economy can grow and whether it’s been doing better or worse than in previous quarters and years. But investors also look for details on where the growth comes from and how well the U.S. economy is positioned to continue economic progress.  The GDP report also provides hints about overall economic and industry trends. But perhaps the biggest question on investors’ minds these days is whether — and when — the Federal Reserve will raise interest rates.  While third-quarter GDP increased at an annualized rate of 2.9% (which was much better than the 2.5% that most economists had expected), much of the growth stemmed from one-time factors.  For instance, a build-up in inventories accounted for 60 basis points of that growth. On… Read More