Business
African American unemployment drops slightly in November
Another month of robust hiring follows other positive economic news. The economy expanded at an annual rate of 3.6 percent in the July-September quarter, the fastest growth since early 2012, the government said Wednesday.
Still, nearly half that gain came from businesses building their stockpiles. Consumer spending grew at the slowest pace since late 2009.
Greater hiring could support healthier spending. Job growth has a dominant influence over much of the economy. If hiring continues at the current pace, a virtuous cycle starts to build. More jobs usually lead to higher wages, more spending and faster growth.
The U.S Federal Reserve has pegged its stimulus efforts to the unemployment rate. Chairman Ben Bernanke has said the Fed will ease its monthly purchases of US$85 billion in bonds once hiring has improved consistently. The bond purchases have kept long-term interest rates low.
The recent economic upturn has been surprising. Many economists expected the government shutdown in October to hobble growth. Yet the economy motored along without much interruption, according to several government and industry reports.
Early reports on holiday shopping have been disappointing. The National Retail Federation said sales during the Thanksgiving weekend – probably the most important stretch for retailers – fell for the first time since the group began keeping track in 2006.
Consumers are willing to spend on big-ticket items. Autos sold in November at their best pace in seven years, according to Autodata Corp. New-home sales in October bounced back from a summer downturn.
Copyright 2013 The Associated Press
