This Morning in Metals: US GDP up 2.1% in Q3, BEA reports in second estimate

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This morning in metals news: U.S. GDP increased by 2.1% in Q3 2021, the Bureau of Economic Analysis reported in its latest estimate; new home sales increased in October; and, lastly, average U.S. gasoline prices are higher this Thanksgiving holiday than any since 2012.

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US GDP up 2.1%

US GDP

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According to the Bureau of Economic Analysis today, U.S. real GDP increased at an annual rate of 2.1% in Q3. The figure is the bureau’s second estimate for Q3 GDP.

U.S. GDP increased by 6.7% in Q2 2021.

“The increase in third quarter GDP reflected the continued economic impact of the COVID-19 pandemic,” the BEA reported. “A resurgence of COVID-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country. Government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased.”

New home sales tick up in October

New home sales in the U.S. increased by 0.4% in October from the previous month, the Census Bureau reported.

Sales reached a seasonally adjusted annual rate of 745,000 in October.

However, the October rate marked a decline of 23.1% from October 2020.

Average gasoline prices hit highest Thanksgiving level since 2012

Those traveling by car for Thanksgiving get-togethers this year are facing high prices at the pump.

According to the Energy Information Information, average U.S. gasoline prices this Thanksgiving are at their highest level for the holiday since 2012.

The average price this year reached $3.40 per gallon, up 62% from last year. Furthermore, the average price is at its highest pre-Thanksgiving level since 2012.

“Higher crude oil prices, more demand for gasoline, and lower gasoline inventories are contributing to higher gasoline prices,” the EIA reported. “Crude oil prices are the primary determiner of U.S. gasoline prices, and the crude oil price made up 57% of the total cost to produce a gallon of gasoline in October 2021. The spot price for Brent crude oil was $79.70 per barrel (b) on November 22, an increase of $34/b (73%) compared with the Monday before Thanksgiving in 2020 and $16/b (25%) higher than the same time in 2019.”

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