Recession probably deepened in October  - U.S. economy preview

The U.S. recession probably deepened as consumer spending plunged in October by the most since the 2001 downturn and businesses slashed investment, government reports may show this week, TehranTimes reported.

Purchases declined one percent after a 0.3 percent drop the prior month, according to the median estimate of economists surveyed by Bloomberg News ahead of Commerce Department figures due Nov. 26. Commerce may also report the same day that orders for long-lasting goods fell for the second time in three months.

The credit crisis has forced cash-strapped consumers to pull back on purchases and companies to cut spending and step up firings. Housing and manufacturing also are deteriorating, a sign the economy is sinking further into what may be the most severe slump in decades.

"The economic indicators are all in the same vein, pointing to a deepening recession," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "Everything is contracting. The economy will stay in a recession for at least six months."

The Commerce Department's spending report may also show that incomes rose 0.1 percent in October, the smallest gain in three months, according to the Bloomberg survey.

The projected decline in spending, which accounts for two-thirds of the economy, foreshadows a holiday season that may be the worst in six years, according to industry projections. A record two-decade expansion in consumer spending ended in the third quarter, causing the economy to contract.

Inflation figures in Commerce's spending report may show price pressures have waned, giving way to the risk of deflation, or a prolonged slide in prices. The Federal Reserve's preferred gauge of inflation, which excludes food and energy costs, was unchanged in October after rising 0.2 percent in September.

Orders for durable goods, products meant to last several years, likely fell 3 percent in October following a 0.9 percent increase the prior month, economists in the Bloomberg survey predicted. Excluding transportation equipment, orders probably fell 1.5 percent, the Nov. 26 report may show.

The economy already was on a much weaker footing in the third quarter, revised figures from Commerce may show on Nov. 25. Gross domestic product likely shrank at a 0.5 percent annual rate from July to September, more than the advance estimate of a 0.3 percent contraction and the biggest slump since the 2001 recession, according to the survey median.

The housing downturn will probably extend into a fourth year as buyers find it difficult to get mortgage loans. S&P/Case-Shiller may report on Nov. 25 that an index of home prices in 20 U.S. cities slumped in September at the fastest pace on record, the survey median shows.

New-home sales, due from Commerce on Nov. 26, plunged in October to the lowest level in 17 years, according to the median forecast in the Bloomberg survey. Two days earlier, the National Association of Realtors may report that home re-sales dropped last month by the most since September 2007.

In other figures, the Institute for Supply Management-Chicago may report business activity in November stayed near the lowest level since the 2001 recession, and Reuters/University of Michigan may report consumer confidence this month held near a 28-year low, according to economists' median forecasts.

Ankara extends Oruç Reis' exploration work in East Med until Nov. 4
Ankara extends Oruç Reis' exploration work in East Med until Nov. 4
Turkey reports 2,091 COVID-19 patients
Turkey reports 2,091 COVID-19 patients
Recep Tayyip Erdogan: Azerbaijan begins to return its lands
Recep Tayyip Erdogan: Azerbaijan begins to return its lands
Loading Bars
Latest
OSCE MG Co-Chairs, FMs of Azerbaijan and Armenia agree to discuss steps necessary to achieve a peaceful settlement of Karabakh conflict
Ankara extends Oruç Reis' exploration work in East Med until Nov. 4
Gubadli city freed from occupation - President Ilham Aliyev
Bulgarian PM Borissov tests positive for coronavirus
Armenian troops' military equipment, ammunition destroyed (VİDEO) (VİDEO)
Operational meeting was held under leadership of President, Commander-in-Chief Ilham Aliyev at Central Command Post of Ministry of Defense (PHOTO)
Ethnic Russian soldier dies in battle to liberate Azerbaijani lands from Armenian occupation
Commanders of Armenian armed forces hold meetings at kindergarden (PHOTO)
Azerbaijani army destroying Armenian armed forces on ground and in air - Anar Eyvazov
Azerbaijani army neutralizes high-ranking Armenian soldier
Armenian armed forces forced to retreat, suffering losses (VIDEO)
Footage from Azerbaijani Jabrayil and Zangilan regions liberated from occupation unveiled (VIDEO)
Armenian terrorist killed in Nagorno-Karabakh
Iran’s NICICO enhances its sales value
Weapon emplacements of Armenian Armed Forces destroyed, says Defense Ministry of Azerbaijan (VIDEO)
Tesla recalls 48,442 vehicles in China
Azerbaijani NGOs apply to relevant int'l structures regarding Armenia's involvement of children in military operations
Islamabad condemns killing of Azerbaijani civilians by Armenian Armed Forces (PHOTO/VIDEO)
Armenia admits loss of 11 more servicemen
Israeli cabinet approves Bahrain normalization accord
Iran boosts pickup manufacturing
Azerbaijan confirms 228 more COVID-19 recoveries
Liberation of Azerbaijani lands from occupation - gratifying – Iranian General
Canadian Azerbaijanis protest against Armenian attacks on Ganja (PHOTOS)
US too knows Armenia is terrorist state, MP
Military uniform price in Armenia increase
Russia’s coronavirus case tally exceeds 1.5 mln
Azerbaijani army destroying military equipment, in background of which Pashinyan took selfie (PHOTO)
554 streets disinfected in Baku (PHOTOS)
Footage about Armenia's missile attack on Ganja prepared (VIDEO)
Funeral service for 13-year-old Arthur, who died due to Armenian terror, being held in church in Ganja (PHOTOS)
Iran assigns lands to develop Pardis Technology Park
Will Iran export water?
Iran to increase in detergents and sanitizers price
Iran reveals its COVID-19 data for October 25
US Azerbaijanis hold protest in San Francisco against Armenian terror (PHOTOS)
Azerbaijani army heroically fighting for liberation of native lands from Armenian occupation (VIDEO)
Names of foreign mercenaries fighting in Karabakh within Armenian army revealed
Armenia must be held accountable for using children in battles, Azerbaijani expert
Azerbaijan announces recent statistics on COVID-19 cases across country
Armenian doctor who issued fake COVID-19 certificates to evade conscription arrested
Iran’s CBI announces volume of funds allocated for imports of essential products
Assistant to Azerbaijani president gives interview to leading Egyptian newspaper Al Ahram
Footage from Azerbaijani Gubadli region liberated from occupation unveiled (VIDEO)
Armenian military attacks against Azerbaijan along bordering regions - acts of aggression as enshrined in UN Charter, says Azerbaijani top official
Armenian Armed Forces shelling Azerbaijani Aghdam, Tartar and Agjabedi regions - MoD
Azerbaijani president's aide comments on French delegation's visit to Armenia
Volume of loans attracted for purchase of agricultural machinery in Iran revealed
Azerbaijan Army uses precision weapons against Armenian Armed Forces (VIDEO)
Iranian gov't to impose strict limitations to fight COVID-19
Production of home appliances in Iran increases
Export of agricultural products from Iran's Kurdistan region increases
Georgia reports 1 928 new coronavirus cases, 604 recoveries
President Ilham Aliyev gave interview to US Fox News TV channel (PHOTO)
Iran strongly condemns disrespect for Prophet of Islam in France
Iran unveils amount of loans issued to services sector
Bahar Azadi gold coin price falling in Iran
Statement made following investigation of Armenia's shelling of civilians in Azerbaijan
Azerbaijan close to military victory in Nagorno-Karabakh conflict - Russian analyst
Armenia's hopes that Russia to help it fight against Azerbaijan doomed to fail - expert
New refrigeration unit commissioned in Georgia
U.S. Vice President Pence's chief of staff tests positive for COVID-19
Azerbaijan forces Armenian troops to retreat in Gubadli direction - MoD
Significant amount of Armenian Armed Forces’ manpower, equipment destroyed - MoD
Azerbaijani troops advance new positions in Khojavend, Gubadli, Lachin directions of front
Over 150 new COVID-19 cases reported in Kazakhstan
Volume of loans issued to trade sector in Iran disclosed
WHO reports record increase in confirmed COVID-19 cases of over 465,000 in 24 hours
Samsung chief Lee dies
5.4-magnitude quake hits 74 km off Kawalu, Indonesia
Turkey reports 2,091 COVID-19 patients
Yemen's Houthis targeted two airports and a base in Saudi Arabia
Brazil reports another 432 COVID-19 deaths
Moscow's death toll from confirmed COVID-19 cases rises by 68
Afghan forces kill senior al Qaeda leader al-Masri who was on FBI most wanted list
UK records another 23,012 coronavirus cases with 174 deaths
Helpless on battlefield Armenia spreads false, provocative information - Azerbaijani MoD
Hikmet Hajiyev: Using children under 15 as soldiers is a war crime
8 killed, 4 injured in road accident in Pakistan's Punjab province
Necessary conditions will be created to extradite Armenian prisoners of war and civilians to third countries - MoD
Armenian army's combat equipment destroyed (VIDEO)
Azerbaijan's Defense Ministry calls on civilians in occupied territories to stay away from military facilities
Ministry of Defense: Armenian Armed Forces resort to provocations to prevent operations of Azerbaijani army
Iran declares amount of loans issued to housing & construction sector
Armenia continues to use underage children in military hostilities (VIDEO)
Photo of another missile launched by Armenia against Azerbaijan unveiled (PHOTO)
President Ilham Aliyev on political objectives of Armenian military attack on Azerbaijan
In center of Baku, there is Armenian church, but mosques on occupied territories were destroyed - President Aliyev
With Georgia our relations are excellent, says Azerbaijani president
Armenian government should not try to frighten its population with Turkey - President Aliyev
And after war with Armenia stops, political settlement enforced, role of Turkey will be very important, very positive - President Aliyev
Wounds of war must be healed by political wisdom, by political will - President Aliyev
Armenian government should understand that they are not now in position to dictate - President Aliyev
Best way for future of Karabakh - to live in peace in harmony, try to become good neighbors again, says President Aliyev
Unlike Armenia, from Russia we buy weapons, we pay for them, says Azerbaijani president
Turkey is not involved in the conflict at all - Azerbaijani president
If Armenia didn’t violate ceasefire today clashes would have stopped - President Aliyev
We cleaned completely the Azerbaijani-Iranian border from Armenian occupants, and there will be no more inconvenience for our brothers across river of Araz in Iran - President Aliyev
If Armenia do not stop, we will go until end to liberate all occupied territories - Azerbaijani president
Azerbaijan became already regional hub for not only for energy, but also for transportation - President Aliyev
All news