Money Matters - Simplified


HSBC cuts India GDP forecast on lack of reforms

Indian GDP growth forecast cut by HSBC

Global banking behemoth HSBC cut India Gross Domestic Product (GDP) forecast owing to a couple of factors, primarily being the lack of reforms and a challenging global economic backdrop.

American consumers reduce spending

A recent report by the Commerce Department released Tuesday reveals that Americans are spending less as there was barely any growth in income in the last nine months.

Third quarter GDP revised upward

Washington -- The U.S. Commerce Department raised its third-quarter gross domestic product estimate to 2.5 percent Tuesday.

A month ago, the department's Bureau of Economic Analysis estimated the GDP rose 2 percent July through September.

The new figure is the second of three estimates that are issued monthly.

Economists had predicted the estimate would rise to 2.4 percent.

The second estimate shows consumer spending rose by 2.8 percent, rather than 2.5 percent as reported in October. Residential investment spending was marked higher at minus 27.5 from minus 29.1. Non-residential investment was also higher, up 10.3 percent compared to a previous estimate of 9.7 percent.

GDP dampens oil prices

New York -- Crude oil prices slid to less than $82 per barrel on the New York Mercantile Exchange as the U.S. gross domestic product figure came in lower than expected.

The Bureau of Economic Analysis in its first of three GDP estimates said economic growth reached 2 percent in the third quarter, less than the 2.2 percent consensus forecast but higher than the 1.7 percent gain in the second quarter.

The price of December delivery crude oil in New York shed 48 cents to $81.70 per barrel, holding close to the new plateau of $82.

Economy Still Tottery: Is it Presaging Another Recession?

If you're rejoicing that the worst of the economic crisis is over, hold on! Though Fed is giving the impression that nation's economy is resuming growth, all is not as rosy as it seems.

China set to unseat Japan as 2nd biggest economy

With a $1.34 trillion gross domestic product (GDP) for the three months ending June, China is on course to topple Japan as the world's second-largest economy.

Revised estimates peg Q1 GDP growth for Q1 at 2.7 percent

In an announcement that surprised many, the U.S. Commerce Department revised its earlier estimate of 3 percent growth in gross domestic product (GDP) in the first-quarter of 2010, bringing it down to 2.7 percent.

GDP estimate stalls stocks

New York -- U.S. markets opened flat Friday after the government revised its first quarter gross domestic product estimate down from 3 percent to 2.7 percent.

The third estimate, based on a more complete set of data, came in lower than expectations, which called for growth in the GDP to remain consistent with last month's 3 percent estimate.

In Washington, a joint House and Senate committee approved of a financial system overhaul bill that includes regulation of derivatives and restrictions on proprietary trading among banks.

British GDP up 0.3 percent

London -- The Office for National Statistics in London said Tuesday Britain's gross domestic product rose 0.3 percent in the first quarter of 2009.

The figure is a sight increase from a previous estimate of a 0.2 percent gain, but slightly less than the 0.4 percent gain of the fourth quarter.

The British economy has pulled out of a recession, but the numbers are hardly impressive. By comparison, the GDP grew 3.2 percent in the United States in the first quarter. Before the fourth quarter, Britain's economy had not grown for six consecutive quarters.

GDP grew 3.2 percent in first quarter

Washington -- The Commerce Department said Friday the U.S. economy grew 3.2 percent in the first quarter, reflecting growth in consumer spending and business inventories.

The figure is considered "advanced," meaning data not yet unavailable could shift the number in the next two months.

Inventory buildup -- a sign that businesses expect consumers will spend more -- added 1.57 percentage points to the GDP. Motor vehicle output added 0.52 percentage points, an increase compared to the 0.45 percentage points vehicle production added to the final quarter of 2009.

Commerce said consumer prices rose 1.7 percent during the quarter, but consumer spending rose 3.6 percent after rising 1.6 percent in the previous quarter.