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U.S. GDP Growth Beats Estimates in Q3
The U.S. economy grew even faster than expected in the third quarter, CNBC reported Thursday. Growth was buoyed by a strong consumer in spite of higher interest rates, ongoing inflation pressures, and a variety of other domestic and global headwinds.
GDP rose at a seasonally adjusted 4.9% annualized pace in the July-through-September period, up from an unrevised 2.1% pace in Q2, according to Commerce Department figures. Economists surveyed by Dow Jones had expected a 4.7% acceleration in real GDP, also adjusted for inflation.
“This report confirmed what we already knew: The consumer went on a shopping spree in the third quarter,” Michael Arone, chief investment strategist for U.S. SPDR Business at State Street Global Advisors, told CNBC. “I don’t think anything in this report changes the outlook for monetary policy. That’s why I don’t think you’re seeing an overreaction from markets.”
He added, “Going forward, the consumer’s not going to spend at the same rate, the government is not going to spend at the same rate, and businesses seem to be slowing down their spending as well. This suggests this might be the peak GDP figure, at least in the next few quarters.”
- ◦Economy
