By CountingPips.com
The second estimate GDP report for the first quarter of 2011 showed that the US economy grew at a rate of 1.8 percent, according to today’s release by the U.S. Commerce Department.
The GDP number came in slightly below expectations but matched the first estimate released last month by the Commerce Department. Market forecasts were expecting the GDP to advance by 2.2 percent for the quarter following the fourth quarter of 2010’s economic growth which registered an increase by 3.1 percent..
Consumer spending was revised lower in the first quarter to show a 2.2 percent increase on an annual basis. This is a decline from the first estimate that showed consumer spending rose by 2.7 percent.
Exports increased by 9.2 percent in the first quarter following a rise by 8.6 percent in the fourth quarter. Imports were higher by 7.5 percent in the first quarter after declining by 12.6 percent in the fourth quarter.
The third estimate for the GDP data will be released on June 24, 2011.
Jobless claims rise more than expected
U.S. jobless claims increased by more than expected in the week that ended on May 21st, according to a release by the U.S. Labor Department today. Weekly initial jobless claims rose by 10,000 workers to a total of 424,000 unemployed workers. The 4-week moving average of unemployed workers decreased by 1,750 workers from the previous week to a total of 438,500.
Market forecasts were expecting jobless claims to number 404,000 workers following the prior week’s 414,000 revised number of claims.
Meanwhile, workers seeking continuing claims for unemployment benefits for the week ending May 14th decreased for the week. Continuing claims fell by 46,000 workers to a total of 3,690,000 unemployed workers. The 4-week moving average of continuing claims rose by 7,750 workers to a total of 3,742,250.
US Dollar lower in Forex Trading while Stocks higher
The US Dollar has been on the defensive in forex trading today against most of the major currencies today after the GDP report. The dollar has been losing ground today versus the euro, Japanese yen, British pound sterling, Australian dollar, Swiss franc and the New Zealand dollar while showing a slight gain against the Canadian dollar.
The US stock markets have had a winning session so far today with the Dow gaining by approximately 35 points, the Nasdaq increasing by over 20 points and the S&P 500 up by around 7 points.
In commodities, oil has traded lower by approximately $1.17 to $100.15 per barrel while gold futures have lost $7.10 to trade at $1,519.50 per ounce at time of writing.
