US economy slows in third quarter

US economy slows in third quarter

WASHINGTON

The U.S. economy slowed sharply in the summer, reflecting a cutback in businesses’ stockpiling of goods, which offset solid consumer spending. But most economists think growth has been strengthening since the July-September quarter ended.

The Commerce Department said Thursday that the economy, as measured by the gross domestic product, grew at a tepid annual rate of 1.5 percent in the July-September quarter, far below the 3.9 percent rate of the previous quarter.

The biggest reason was a push by businesses to shrink unwanted stockpiles, which slashed 1.4 percentage points from quarterly growth but is expected to be only temporary. Encouragingly for the economy, consumer spending remained solid over the summer: It rose at a 3.2 percent annual rate, down only slightly from the previous quarter.

US jobless aid

WASHINGTON

The number of people seeking U.S. unemployment aid barely rose last week, and the average level of applications in the past month fell to a 42-year low.

The Labor Department said Thursday that weekly applications rose just 1,000 to a seasonally adjusted 260,000, a very low level historically that suggests employers are cutting few jobs.

The four-week average, a less-volatile measure, dropped 4,000 to 259,250. That is the fewest since December 1973.

Average US rate on 30-year mortgage slips to 3.76 percent

WASHINGTON

Average long-term U.S. mortgage rates were slightly lower to unchanged this week amid expectations that the Federal Reserve isn’t ready yet to raise its key short-term interest rate.

Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage slipped to 3.76 percent from 3.79 percent a week earlier. The rate on 15-year fixed-rate mortgages stayed at 2.98 percent.

It was the 14th-straight week of rates below 4 percent, and they are well below last year’s levels. A year ago, the average 30-year mortgage rate was 3.98 percent, while the rate for 15-year loans was 3.13 percent.

Earnings fail to lift US stocks

NEW YORK

Stocks slipped Thursday after the U.S. said economic growth slowed more than expected in the summer.

A mixed batch of third-quarter earnings reports didn’t inspire investors. Companies including restaurant chain Buffalo Wild Wings and camera maker GoPro plunged after releasing weak results.

The market was lower all day after the Commerce Department said the economy cooled off in the summer as businesses cut production and drew down their inventories. The department estimated that gross domestic product grew 1.5 percent, a bit less than analysts had forecast.

Wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Alcoa Inc., .128.95-0.04

Aqua America, .71 28.31-0.28

Avalon Holdings,1.89-0.03Cortland Bancorp, .2414.55-0.05

Farmers Nat., .128.240.03

First Energy, 1.44 30.82-0.02

Fifth/Third, .5219.47-0.19

FirstMerit Corp., .6819.24-0.07

First Niles Financial, .208.520.00FNB Corp., .4813.80-0.10

General Motors, 1.4434.75-0.47

General Electric, .9229.34-0.05

Huntington Bank, .24 11.30-0.05

iHeartMedia Inc.,3.500.00

JP Morgan Chase, 1.7665.21-0.29

Key Corp, .3013.38-0.52

LaFarge, .3416.50-0.50

Macy’s, 1.44 49.70-0.17Parker Hannifin, 2.52 104.511.53

PNC, 2.0492.15-0.77

Simon Prop. Grp., 6.20204.39-1.32Stoneridge 12.44-0.23

Talmer Bank, .04 17.130.22

United Comm. Fin., .10 5.62-0.12

Selected prices from Thursday’s 4 p.m. close.