The US economy grew at a 3.5% pace in the third quarter, faster than expected

[Marshall2.0]

The U.S. economy grew at a faster-than-expected rate in the third quarter as inflation was kept in check and consumer spending surged, according to data released by the Commerce Department on Friday.

Gross domestic product expanded by a 3.5 percent annual rate. Economists polled by Dow Jones expected the economy to expand by a 3.4 percent annual rate.

The department said the PCE price index, a key measure of inflation, increased by 1.6 percent last quarter, much less than the 2.2 percent increase expected by economists polled by StreetAccount.


Consumer spending, which accounts for more than two thirds of U.S. economic activity, grew by 4 percent in the third quarter, the strongest since the fourth quarter of 2014. The strong rise in consumer spending helped offset a 7.9 percent decline in business spending. That was the biggest quarterly decline in business spending since the first quarter of 2016.

“The headline was not too far from expectations, but we did get a few surprises. Consumer was stronger than we expected,” said Scott Brown, chief economist at Raymond James. “The consumer accounts for 68 percent of overall GDP, and the consumer really drives the bus. Business to be sure, but there’s got to be consumption ant the end of it.”

While stronger than expected, the overall expansion was a slower pace of growth than in the previous quarter. Gross domestic product grew by 4.2 percent in the second quarter, marking the fastest quarterly expansion since the third quarter of 2014. The economy increased by 2.2 percent annual pace in the first quarter of the year.

The report comes amid growing concerns about rising interest rates slowing the economy. China and the U.S. have slapped tariffs on billions of dollars worth of goods this year, increasing fears that tighter trading conditions will slow down the global economy and eventually hit things here in the U.S.

U.S. equities have taken a beating this month into the report, with the S&P 500 falling more than 7 percent in October through Thursday’s close.

[Marshall2.0]

That's funny...I'm not tired of winning yet!!!

[lustylad]

Uh-oh! Looks like WTF is on track to lose his bet with Bambino. The over/under for 2018 full-year GDP growth is 3% and WTF took the under.

[Gotyour6]

Obama plans are starting to work.

We need to thank him for putting in the policy that did this.

CNN Spins it:
Since Trump was in office people are spending more and more with saving less money.

Spending has been on the rise and continues to go up. Some say they are spending up to 4% more...

[WTF]

Originally Posted by lustylad

Uh-oh! Looks like WTF is on track to lose his bet with Bambino. The over/under for 2018 full-year GDP growth is 3% and WTF took the under.

Yes lusty, one of my first post acknowledged that...hell, I'll take the over too!

A year away from this ignorance is a win, not a loss.

[lustylad]

Originally Posted by WTF

Yes lusty, one of my first post acknowledged that...

Glad to see you're taking ownership of your bet. We'll announce the winner in late January.

Originally Posted by WTF

hell, I'll take the over too!

Too late now, but it's good to see you're starting to believe in Trumponomics.