Quarterly US GDP at annualised rates.

The US Bureau of Economic Analysis (BEA), in its latest estimate of second quarter GDP (gross domestic product), said inventory liquidation was steeper than first thought and consumer spending not as weak -- a positive signal for growth in the current quarter.

A Department of Labor report showed that the number of US workers filing new claims for jobless benefits, dipped last week.

The BEA confirmed that GDP fell at a seasonally adjusted 1% annual rate April through June.  In the first quarter, real GDP decreased at a 6.4% annual rate.

US GDP decreased by 0.3%  in the second quarter, compared with the previous quarter, after a 1.6% dip in the first quarter

The BEA said inventories were cut by $159.2 billion in the second quarter, revised from a previously reported $141.1 billion cut.

Initial claims for jobless benefits fell 10,000 to 570,000 in the week ended Aug. 22nd, the Labor Department said.

The four-week average of new claims, which seeks to smooth volatility in the data, fell 4,750 to 566,250.

The number of continuing claims -- those extending more than one week in the week ended Aug. 15th -- fell 119,000 to 6,133,000. That followed a rise of 2,000 the previous week.

US bank deposit guarantees

The Federal Deposit Insurance Corp.'s fund that protects more than $4.5 trillion in US bank deposits dipped to just $10.4 billion at the end of June, as the banking industry continues to struggle with bad loans.


The level of the FDIC's fund, the lowest since the savings and loan crisis, makes it inevitable that the government will have to hit the banking industry with another special fee to recapitalise its reserves.

The FDIC said it had 416 banks on its "problem" list at the end of the second quarter, up from 305 at the end of March.

"While challenges remain, evidence is building that the U.S. economy is starting to grow again," said FDIC chairman Sheila Bair. "Banking industry performance is -- as always -- a lagging indicator. The banking industry, too, can look forward to better times ahead. But, for now, the difficult and necessary process of recognizing loan losses and cleaning up balance sheets continues to be reflected in the industry's bottom line."

Guinness

Diageo Ireland said today that sales Guinness in Ireland stalled in the year to the end of June in a declining market.

The company said Guinness increased its share of the pub market in the Republic by 1.3 points to 32.2%. Diageo Ireland said Revenue figures showed that the volume of alcohol sales has fallen by more than 9% so far this year. It also said growth in the off-licence market had stalled, with a 3% drop in the value of sales in the 12 months.

Parent company Diageo, the world's biggest spirits group, met forecasts with a 10% rise in annual earnings but cut its profit target for this year due to concerns about the strength of any recovery.

US markets

Stock fell in New York Thursday, despite a second day of good economic data.

The Dow Jones Industrial Average dipped 48 points, or 0.5% at 9494.55.

The Nasdaq Composite Index declined 1.1% and the S&P 500 fell 0.8%,

Live US Indices

European stocks fell for a second straight day Thursday.

The Dow Jones Stoxx 600 is down 0.6%

German consumer confidence rose for the fifth straight month in August

In Dublin, the ISEQ has risen 1.65%.

C&C is up 15.6% after announcing an acquisition today.

Aer Lingus has risen 5.4% after reporting an operating loss of €93m in H1 2009.

AIB and BoI are up 7%.