Upon further review: The U.S. economy grew at a sizzling 5% annual rate in the July-September period, the fastest in more than a decade, on the strength of higher consumer spending and business investment. The Associated Press reports the resurgence in growth last quarter provided the latest evidence that the U.S. economy is steadily strengthening and outshining most others around the world. In a report issued this morning, the Commerce Department sharply revised up its estimate of third-quarter growth from a previous figure of 3.9%. Read the full story.
The buck stops here: U.S. businesses with significant overseas sales are beginning to feel the effects of the strengthening dollar, USA Today reports. Last week, Coca-Cola announced it expects per-share earnings in the current quarter to be 9% lower because of the currency impact. And in a recent call with analysts, Nick Gangestad, chief financial officer of 3M, the Minnesota-based industrial and consumer products conglomerate, said he expects the rising value of the greenback to reduce sales in dollars by 2% to 3% next year. The strong dollar “has the potential of damaging overseas demand,” says Chad Moutray, chief economist of the National Association of Manufacturers. Read the full story.
The cost of doing business: The energy industry spent more than $721 million on political campaigns during the 2014 election cycle, according to the Center for American Progress. As FuelFix.com reports, coal, oil, and gas and electric utilities companies also funneled perhaps hundreds of millions of dollars more to outside political groups over the two years leading up to November’s midterm elections, the Washington, D.C.-based think tank says. The split in spending was nearly 80% to 20% in favor of Republican candidates and groups over Democrats. The Atlas Project, a left-leaning research group, compiled the report from Center for Responsive Politics data on contributions and lobbying spending, and from Kantar Media Intelligence data on advertising spending. Read the full story.
