Economy Expands At Better, Still Slow, Pace In September

The economy expanded at a much better pace in September than in August though, at a sub-zero minus 0.14, was still under the historical average. August is now revised even more deeply into the negative column, to minus 0.72 from an initial minus 0.55. September's improvement is broad-based and centered in production which, helped by gains for manufacturing and mining, pulled September down only fractionally vs a steep drag of minus 0.39 in August. Employment, boosted by a 442,000 rise in the household measure of the labor force, also improved in September, pulling the month down by minus 0.03 vs minus 0.15 in August. Personal consumption & housing came in at minus 0.09 vs August's minus 0.12 with this component showing special strength in housing permits. The fourth component, sales, orders & inventories, registered a minus 0.1 vs August's minus 0.06. Despite September's improvement and reflecting the downward revision to August, the 3-month average is at minus 0.21 vs minus 0.14 in August to indicate a trend of slower-than-usual economic growth.