Elgin Area Chamber Of Commerce: GDP Growth Slower Than Expected, Jobless Claims Drop, Reese's Wins Halloween Candy Poll

Press release from the Elgin Area Chamber of Commerce:

October 29, 2021

A computer-chip shortage slowed new car sales and production in the third quarter. (Getty Images

By Richard Lawson

CoStar News
 

GDP Growth Slower Than Expected

Economic growth in the past quarter fell short of expectations as the country felt the weight of supply chain challenges and a surge in delta variant coronavirus cases.
The Commerce Department reported the gross domestic product grew at an annual rate of 2% in the third quarter, lower than analyst projections of about 2.7%. This is the first estimate and could change, as has happened with previous quarters as the government culls more data.

Slowing growth in consumer spending was one culprit. Growth slowed as well in residential investment, which takes into account single-family and multifamily construction.

Consumer spending on goods fell 9.2%, led by a more than 26% drop in buying big-ticket items such as new automobiles. A computer-chip shortage has slowed new car sales and production.

Supply chain struggles showed up in the GDP as well, with clogged U.S. ports as well as a shortage of truck drivers and other labor causing major delays in moving products across the country.

Bob McNab, director of the Old Dominion University’s Dragas Center for Economic Analysis and Policy, in a LinkedIn post cautioned against overreacting. “Patience is required, and we should avoid calls for more stimulus,” McNab said.

Jobless Claims Drop
New unemployment claims hit a new pandemic low last week, beating the previous week’s low.

The Labor Department reported Thursday 281,000 claims were filed, 10,000 lower than the previous week.

Continuing claims, those still using unemployment benefits, fell 237,000 to 2.243 million in the week that ended Oct. 16. This, too, is another pandemic low.
As the country heads into the holiday season and delta variant coronavirus cases subside, “claims are likely to continue declining," Daniel Zhao, senior economist for online employment site Glassdoor, wrote on Twitter.

California reported the largest increase in new claims, while Virginia’s new claims decreased the most.

Reese’s Wins Halloween Candy Poll
Trick or treaters may hold onto their Reese’s more than any other Halloween candy, a survey shows.

A Harris Poll of children aged 8 to 17 found that only 11% would trade Reese’s for other candy. Mars Inc.’s Twix and Starburst as well as Hershey bars and KitKat, another Hershey product, were next at 12%.

Candy corn, made by several companies, was traded the most. And the survey found kids are willing to trade 10.5 packs of M&Ms for a single Blow Pop.

The results provide one possible reason Hershey Co. has found demand sufficient to build an 801,000-square-foot fulfillment center in its home state of Pennsylvania. Hershey has invested $178 million in the South Annville Township warehouse that is nearing completion. It is about 11 miles from Hershey’s headquarters.

Source: CoStar Group, www.costar.com

This press release was produced by the Elgin Area Chamber of Commerce. The views expressed here are the author’s own.