Economists expected U.S. GDP to grow 2.5% in the 3rd quarter following growth of 1.4% in the Q2. The U.S. economy outpaced these expectations with increases in exports and inventory investment fueling a 2.9% jump in GDP. Although consumer spending continues to lag, this is expected to change with the upcoming holiday season that generally boosts Q4. This growth is a good sign for the U.S. economy, which many believed was stalling and showing signs of weakness. Despite Donald Trump's constant negativity, the nation is gaining confidence in the economy and we look to be on pace for a fed rate hike in December. We will be watching the fed closely over the next couple of days for indications on upcoming monetary policy.
This is a very relevant article, and it is great to see the the U.S. economy is looking positive for the future. This article does raise questions on Trumps point about how GDP is not increasing at the rate it should be. It will be interesting to see if consumer spending increases at the rate it needs to in Q4, and if it doesn't how that will affect our economy growth.
ReplyDeleteEven though the rate in which GDP growth is slow it's evident that it is growing. The only facet now that needs to be aligned is consumer spending. Hopefully it will follow in a positive trend down the line.
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