South-Westerns' Economic News Summaries
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EconNews Online is South-Western's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary.
NATIONAL INCOME ACCOUNTS 
Title  Brief Summary 
Consumer Spending Falls as American Consumers Become Pessimistic About Economy
Full Summary
Personal Consumption, the largest spending component in the National Income Accounts, depends heavily on consumer expectations about the future and consumer confidence in their ability to pay for their purchases. The latest report by a New York based business industry group reported that the August 2006 Consumer Confidence Index fell over 7 points.
(Updated October, 2006)
Let's See….How Much of a Tip Should I Leave?
Full Summary
Service sector spending, the largest component of U.S. personal consumption expenditures, grew in March over February. The service sector provides non-tangible products to consumers and businesses--such as insurance, tourism, restaurant, and healthcare.
(Updated May, 2006)
GDP Measures Subject to R&D
Full Summary
The Bureau of Economic Analysis and the Federal Reserve have conducted research to consider new ways to calculate Gross Domestic Product (GDP) so that the figure that describes U.S. productivity will include research and development efforts. Currently, GDP figures generally undercount the dollar returns from expenditures on research and development (R&D).
(Updated May, 2006)
August Shows Strong U.S. Durable Goods Sales
Full Summary
Orders for durable goods recovered strongly in August after falling over 5 percent in July. Although this is a good sign for economic growth, the measure was taken before the devastating impact of Hurricanes Katrina and Rita on the Gulf Coast.
(Updated October, 2005)
Consumer Confidence Drops
Full Summary
The latest report by a New York based business industry group called the Conference Board reported that the July 2005 Consumer Confidence Index fell three points. As the largest spending component in GDP, analysts are always concerned about consumer expectations and the impact a fall in confidence will have on the short-term macro economy.
(Updated September, 2005)
Consumer Optimism High
Full Summary
Consumption, the largest spending component in the National Income Accounts, depends heavily on consumer expectations and confidence. The latest report by a New York-based business industry group reported that the June 2005 Consumer Confidence Index rose nearly three points.
(Updated August, 2005)
Fourth Quarter 2004 GDP Revised Upward
Full Summary
The U.S. government revised its measure of economic output for the fourth-quarter of 2004. The upward revision suggested that the economic momentum of the economy was greater that previously reported.
(Updated April, 2005)
Durable Goods Sales Show Decline
Full Summary
Durable goods orders in the U.S slipped unexpectedly in August. This U.S. Commerce Department report adds more fuel to the argument that the U.S. economy is showing signs of decline.
(Updated November, 2004)
Consumer Attitudes Are Being Tested
Full Summary
Consumption spending is the largest component of GDP and depends heavily on consumer expectations and consumer confidence. The latest report by a New York-based business industry group reveals that economic events are testing consumer confidence, pulling consumer attitudes in different directions.
(Updated July, 2004)
Rapid Economic Growth Reported
Full Summary
The gross domestic product, a measure of the total value of goods and services produced in the economy, has grown at a pace not seen since 1984. The measure posted a rapid 7.2 percent growth in the third quarter of 2003. The rapid growth is credited to consumer spending, export spending, new business spending on capital goods and technology, and the Bush administration's tax cuts.
(Updated November, 2003)
Consumers Appear Pessimistic
Full Summary
A fall in the Consumer Confidence Index of nearly five points in September could lead to a slow and disastrous holiday shopping season for retailers. The latest Consumer Confidence Index came in at 76.8, compared to 81.7 in August. This figure indicates that consumers have become more pessimistic about the strength of the U.S. economy.
(Updated October 7, 2003)
Consumer Confidence Crisis
Full Summary
Consumption, the largest spending component in the National Income Accounts, depends heavily on consumer expectations and consumer confidence. The latest report by a New York based business industry group reported that the July Consumer Confidence Index fell by nearly seven points in July. This surprise drop adds new worries of recession for the already struggling national economy.
(Updated August 27, 2003)
How Domestic is GDP?
Full Summary
Critics have voiced limitations of the GDP, which is used to measure economic welfare, among other things, and depends on many factors¾only some of which are included in GDP Responding to this criticism, a study focused on the amount of unpaid work that takes place.
(Updated November 1, 2000)
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