Consumers still spending for now

The estimates for gross domestic product (GDP) in third quarter (Q3) of 2001 put GDP at 0.6% higher than in the third quarter (Q3) of 2000. The complete figures for industrial production suggest that the chance of a downward revision are high. The sharp fall in manufacturing output between August and September reflects the caution due to terrorist attacks in the US but the economy is set to meet the lower end of the budget's forecast of growth of 2.25%-2.75%. The consumers do not seem willing to adjust their spending fully to their declared loss of confidence in the economy. The number of unemployed's are also increasing as the number of claimants for unemployment benefits rose from 4,300 to 951,100.