Recent economic indicators point to some positive reinforcement that we're coming out of the recession, including news of the gross domestic product rising 3.5 percent in the third quarter
, according to a U.S. Department of Commerce report.
According to the Associated Press, the news buoyed investor confidence Thursday, causing the Dow Jones Industrial Index to close up 168 points. In addition, the Standard & Poor's 500 index gained 1.9 percent, while the Nasdaq composite index was up 1.7 percent.
The GDP boost was the first increase in a year, according to the Department of Commerce, and was higher than the 3.3 percent gain predicted by economists polled by Thomson Reuters, the AP reports. GDP was down 0.7 percent in the second quarter.
The Department of Commerce attributed the third quarter results to a boost in consumer spending, saying that spending on new cars and trucks under the federal Cash for Clunkers program was a big contributor. In addition, housing increased for the first time in almost four years, and inventory, exports and government spending was strong during the quarter. The personal saving rate, or the saving as a percent of current-dollar disposable personal income, was down to 3.3 percent in the third quarter, compared to 4.9 percent in the second quarter.
Consumer spending and the personal saving rate are important indicators for the trucking industry, as analysts and economists have pointed out. They both have an effect on whether there's freight to haul.
Meanwhile, a few companys' third quarter results also indicated a recovery is under way. Heavy-duty parts supplier Federal-Mogul, Southfield, Mich., announced net income of $10 million, versus $4 million in the year-ago period. During the first quarter of 2009, the company lost $101 million. The company also managed to boost sales to $1.4 billion, an improvement of $76 million and $142 million over the second and first quarters, respectively.
Lake Forest, Ill.-based Tenneco reported earnings before interest, taxes and noncontrolling interest was up 25 percent to $35 million, compared to $28 million a year ago.
"The actions we have taken to help counter overall weak industry conditions helped improve our profitability this quarter and position Tenneco to capitalize on an improving production environment going forward," said Gregg Sherrill, chairman and CEO, Tenneco.
, according to a U.S. Department of Commerce report.
According to the Associated Press, the news buoyed investor confidence Thursday, causing the Dow Jones Industrial Index to close up 168 points. In addition, the Standard & Poor's 500 index gained 1.9 percent, while the Nasdaq composite index was up 1.7 percent.
The GDP boost was the first increase in a year, according to the Department of Commerce, and was higher than the 3.3 percent gain predicted by economists polled by Thomson Reuters, the AP reports. GDP was down 0.7 percent in the second quarter.
The Department of Commerce attributed the third quarter results to a boost in consumer spending, saying that spending on new cars and trucks under the federal Cash for Clunkers program was a big contributor. In addition, housing increased for the first time in almost four years, and inventory, exports and government spending was strong during the quarter. The personal saving rate, or the saving as a percent of current-dollar disposable personal income, was down to 3.3 percent in the third quarter, compared to 4.9 percent in the second quarter.
Consumer spending and the personal saving rate are important indicators for the trucking industry, as analysts and economists have pointed out. They both have an effect on whether there's freight to haul.
Meanwhile, a few companys' third quarter results also indicated a recovery is under way. Heavy-duty parts supplier Federal-Mogul, Southfield, Mich., announced net income of $10 million, versus $4 million in the year-ago period. During the first quarter of 2009, the company lost $101 million. The company also managed to boost sales to $1.4 billion, an improvement of $76 million and $142 million over the second and first quarters, respectively.
Lake Forest, Ill.-based Tenneco reported earnings before interest, taxes and noncontrolling interest was up 25 percent to $35 million, compared to $28 million a year ago.
"The actions we have taken to help counter overall weak industry conditions helped improve our profitability this quarter and position Tenneco to capitalize on an improving production environment going forward," said Gregg Sherrill, chairman and CEO, Tenneco.
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