A slowdown in GDP growth, opposition to proposed tax overhauls, a drop in durable goods orders, falling jobless claims, a bet on suburban co-working spaces, an expectation for strong holiday shopping, and a tour to promote Connecticut’s “baby bonds” are among the top business news items this morning.
National
Economic growth in the United States slowed in the third quarter, with GDP growth falling from 1.6 percent in the second quarter to 0.5 percent. The slowdown, along with a decline in consumer spending and business investments, was attributed to a new wave of COVID-19 infections as well as persistent supply chain issues.
Two major U.S. business groups, the U.S. Chamber of Commerce and Business Roundtable, are expressing concerns about tax proposals Democrats have put forward to fund a major social policy and environmental bill. These include a “billionaires’ tax” and a 15 percent minimum corporate tax rate.
Durable goods orders fell 0.4 percent in September, the first drop in four months. The decrease was less than expected, and driven largely by weaker orders for autos and aircraft.
Initial jobless claims again declined last week, falling to 281,000. Continuing claims in the prior week fell to 2.24 million.
Business trends
Co-working startups have started to establish spaces in more suburban and residential areas, a departure from a previous trend of their concentration in cities. The trend anticipates that companies will continue to utilize satellite workspaces as they move toward more remote and hybrid models.
A major retail trade group is anticipating a strong holiday shopping season despite worries about reduced inventories, delivery delays, and higher prices. The National Retail Federation predicts an increase in holiday sales of 8.5 percent to 10.5 percent, due in part to rising household incomes.
Connecticut
Connecticut State Treasurer Shawn T. Wooden and State Senator Marilyn Moore will begin a statewide tour today to promote awareness of Connecticut’s new “baby bonds” program. Established earlier this year through legislation, the program creates a trust for children born under the state’s Medicaid program, allowing them to draw on the funds upon reaching adulthood for purposes such as pursuing higher education or starting a business.
