US Business Newsletter
October 01 - October 31, 2021
Greetings from Consulate General of India,
New York!
Welcome to the October 2021 edition of our newsletter, bringing you important policy and high-impact news.
We hope you find it useful.
A Forum for Indian Businesses in North East USA

(Covering: Connecticut, Maine, Massachusetts, New Hampshire,
New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont)
US Economy Slowed in Third Quarter on Delta Surge, Supply Crunch
The U.S. economy grew at the slowest pace of the recovery in the third quarter, but economists expect strong consumer demand and an easing pandemic to boost growth in the coming months despite lingering supply constraints. Gross domestic product grew at a seasonally adjusted annual rate of 2.0% from July to September, the Commerce Department said Thursday, 28th October 2021, marking the weakest quarter of growth since the recovery began in mid-2020.
U.S. Consumer Confidence Rose as Delta Covid-19 Wave Eased
U.S. consumer confidence increased in October following three months of declines, as the number of Covid-19 cases due to the Delta variant started to ease. The consumer confidence index increased to 113.8 in October from a revised 109.8 in September, according to data from the Conference Board released Tuesday, 26 October 2021. The indicator came in above the 108.0 estimates from economists polled by The Wall Street Journal.
U.S. Home Sales Jumped 7% in September
U.S. home sales surged in September with their strongest showing since January, ending a month’s long stretch when housing market activity slowed from its frenzied pace and high prices crowded out many buyers. A late-summer dip in mortgage rates and the continued hunt for more space to work at home spurred an uptick in demand, housing analysts said. Sales were especially robust at the high end, aided by a booming stock market.
Fed Official Says Lingering Inflation Could Change Interest-Rate Outlook
A top Federal Reserve official warned that extended high inflation through next spring could force the central bank to consider raising interest rates sooner than anticipated. Fed Governor Randal Quarles said Wednesday, 20 October 2021 that he still expects higher prices to ease next year as bottlenecks and supply-chain disruptions fade. If the Fed raised rates in response to recent price surges driven by the economic reopening, the central bank could constrict demand at the same moment that supply bottlenecks abate, Mr. Quarles said during a moderated discussion at a conference in Los Angeles. That could lead to undesirably low levels of inflation and employment.
Retail Sales Rise, Showing Strong Consumer Demand, Higher Inflation

Americans stepped up their spending in September, a sign of resilient demand and rising inflation as consumers head into the holiday shopping season. Sales at retail stores, restaurants and online sellers rose a seasonally adjusted 0.7% in September from the previous month, the Commerce Department said Friday, 15 October 2021. The rise in sales reflects persistently strong demand and higher consumer prices.
U.S. Prices, Wages Rise at Fastest Pace in Decades
Consumer prices rose at the fastest pace in 30 years in September while workers saw their biggest compensation boosts in at least 20 years, according to new government data released Friday. Consumer spending also rose in September despite the expiration of enhanced unemployment benefits, the data showed.
Twitter Posts Strong Ad Revenue Growth Despite Apple Privacy Updates
Twitter Inc. TWTR -1.38% largely dodged turmoil in the digital advertising market from new Apple Inc. app privacy policies and supply-chain disruptions as it reported a 37% jump in third-quarter revenue. The company on Tuesday, 26 October 2021 posted $1.28 billion in revenue, largely in line with Wall Street expectations, with ad sales rising 41% from the year-ago period.
Commercial Real-Estate Sales and Values Surge to Records
Investors purchased a record amount of commercial real estate in the third quarter, defying warnings that the Covid-19 pandemic would erode these property values and starve the industry of cash. Instead, purchases of apartment buildings, life-science labs and industrial properties, which serve as e-commerce distribution centers, rocketed commercial sales to more than $193 billion in the quarter. That is up 19% compared with the same three months in 2019, before the pandemic, and the biggest quarter for commercial property sales ever, according to data firm Real Capital Analytics.
Pfizer Asks F.D.A. to Authorize Its Covid-19 Vaccine
for Children 5 to 11
Pfizer and BioNTech asked federal regulators on Thursday, 7 October 2021 to authorize emergency use of their coronavirus vaccine for children ages 5 to 11, a move that could help protect more than 28 million people in the United States. The companies say they are submitting data supporting the change to the Food and Drug Administration. The agency has promised to move quickly on the request and has tentatively scheduled a meeting on Oct. 26 to consider it. An F.D.A. ruling is expected as early as Halloween.
United Airlines earned $473 million in the third quarter as travel demand stayed strong
United Airlines on Tuesday, 19 October 2021 reported a $473 million profit for the three months ending in September, underscoring the resilience of air travel demand during the spread of the Delta variant of the coronavirus. The airline, which said it had $7.8 billion in operating revenue during the quarter, also expressed optimism about the coming months, noting that government officials around the world are slowly easing travel restrictions and companies are starting to send employees on more business trips.
Retail sales were lifted in September by spending and higher prices
Retail sales rose unexpectedly in September, as American consumers shook off fast-rising prices, shortages of goods, and the Delta variant outbreak in many parts of the country. It was the second straight month of gains. Sales climbed 0.7 percent in September, following a 0.9 percent gain in August, the Commerce Department reported. The increase in spending was broad-based, with sales at restaurants and bars, clothing stores and home goods stores climbing.
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