Friday, October 27, 2017
Economy grew brisk 3% in Q3 despite hurricanes
Despite the two devastating hurricanes that recently hit our country, our economy continued to grow in Q3 of this year. While housing construction dramatically fell, business stockpiling and consumer spending picked up the slack. The U.S's GDP increased at 3% following a 3.1% increase in the Q2, marking the first time since mid-2014 that the GDP grew at or over 3% for consecutive quarters. Economists expected the hurricanes to cause a decrease in GDP of around .5% but that didn't happen. GDP actually increased to 3%. Economists are also forecasting an increase in output as construction crews repair the damages caused by the hurricanes and consumers make purchases for their newly re-built homes.
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That is interesting that GDP has grown as a result of the hurricanes that have hit. This could be because of the increase in the amount of output that certain industries have had to put in as a result of the devastation. The construction industry and the oil and gas industries have been busy as a result of the hurricanes hitting, especially in Texas.
ReplyDeleteThe government is using the higher growth statistics in spite of the hurricane damage as evidence that even the promise of tax cuts has increased peoples confidence in the economy and its ability to grow.
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