The US economy expanded 3.2 per cent in the third quarter, the Commerce Department said on Thursday, in a further upwards revision of data reflecting stronger consumer spending and investment than earlier estimated.
The world's biggest economy grew for the first time this year in the July to September period, after two quarters of contraction that worsened recession fears.
Authorities earlier revised the GDP figure to 2.9 per cent, annualised — already an improvement from the 2.6 per cent first reported in October.
Both adjustments “primarily reflected upwards revisions to consumer spending” as well as non-residential fixed investment, the Commerce Department said, in its final GDP estimate for the quarter.
But growth was partly offset by decreases in residential fixed investment and private inventory investment, it added.
Within consumer spending, a rise in services was partly held back by a drop in goods — sales of cars and auto parts lagged as did food and beverage purchases, as households grappled with soaring costs.
An increase in government spending was led by upticks in staff compensation and defence spending, the Commerce Department said.
The data also showed that personal consumption expenditures picked up 2.3 per cent, markedly higher than the 1.7 per cent previously estimated.
But it is unclear how long consumers will be able to keep up the current pace of spending.
“Despite a rapid increase in interest rates, the economy is growing and importantly, households are still spending,” said Rubeela Farooqi of High Frequency Economics in a note.
The Federal Reserve has raised interest rates seven times this year in an attempt to tamp down decades-high inflation, walking a tightrope to try to cool the economy without triggering a recession.
While effects of the higher rates are rippling across sectors, consumer spending has proven more resilient than expected.
But analysts point to signs that households are dipping into their savings, predicting a slower growth path in the future.
“In 2023, we expect a slower growth trajectory,” said Ms Farooqi.
“In terms of Fed policy, even as growth slows … a focus on lowering inflation means rates will remain higher for longer next year,” she said.
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
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Golden Shoe top five (as of March 1):
Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Profile of Bitex UAE
Date of launch: November 2018
Founder: Monark Modi
Based: Business Bay, Dubai
Sector: Financial services
Size: Eight employees
Investors: Self-funded to date with $1m of personal savings
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
The years Ramadan fell in May
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Abu Dhabi World Pro 2019 remaining schedule:
Wednesday April 24: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-6pm
Thursday April 25: Abu Dhabi World Professional Jiu-Jitsu Championship, 11am-5pm
Friday April 26: Finals, 3-6pm
Saturday April 27: Awards ceremony, 4pm and 8pm
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Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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