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![The US economy has improved with jobless claims down for 86 straight weeks, likely prompting the Fed to move to a rate hike next month [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/11/256694269_8-e1478013394428.jpg)
The US economy has improved with jobless claims down for 86 straight weeks, likely prompting the Fed to move to a rate hike next month [Xinhua]
Markets have for the better part of the past year speculated when the Fed would take such action – a measure that would indicate its confidence in the growth of the economy, and particularly the job market.
While most analysts believe that the Fed will hold off raising interests rates this month (largely due to the Presidential elections on November 8th), it will build the case for a hike in December as it points to growing employment, among other factors.
The Fed may also have gotten a boost from a recent report that the economy witnessed a growth of 2.9 percent in the third quarter of its fiscal year.
The report from the Commerce Department came amid a surge in exports and a slight comeback in inventory investment cushion a slowdown in consumer spending, which accounts for more than two-thirds of U.S. economic activity and has dropped to 2.1 per cent from 4.3 per cent in the second quarter.
Exports increased at a 10 per cent rate, a surge unseen since the fourth quarter of 2013, which led to trade contributing 0.83 percentage points to GDP growth.
The Commerce Department noted in its report that a large part of the export gains came from soybean exports, a surge that is unlikely to repeat itself in future quarters.
Joblessness has also gone down, as the US Labor Department said earlier this month that initial jobless claims for the week ending October 22 fell by 3,000 from the week prior – marking the 86th consecutive week that the figure is below the 300,000 mark.
The BRICS Post with inputs from Agencies
