U.S. Sees Healthy GDP in Q3

Growth of U.S. Gross Domestic Product in the third quarter appears to have maintained the strong performance of the second, according to the first estimate of 3Q GDP growth released Friday by the Bureau of Economic Analysis. Growth was reported to be 2.98 percent quarter on quarter and 2.26 percent year on year. (At the end of this piece are some expanded definitions of GDP.)

Economy.com had this to say about Q3 GDP: “The U.S. economy continues to perform well, and economic prospects through 2018 are upbeat. U.S. real GDP growth is on track to come in a little above 2 percent this year and accelerate further above potential next year. Unemployment at just over 4 percent is in line with a full-employment economy, but the tighter labor market has not sparked significant upward pressure on wages or inflation. Hurricanes appear to have had little impact on growth and will likely provide some near-term support as rebuilding and restocking take place in earnest. This was evident in September vehicle sales. It will be a welcome boost, as the composition of GDP growth was somewhat less favorable in the third quarter than the second. Growth in final sales fell with slower consumer spending growth while inventory accumulation made a noteworthy contribution to growth.”