GDP Expands at Highest Rate in Two Years

by Marilou Long on November 29, 2016

in Economic Indicators

U.S. GDP expanded at a 3.2% rate in the third quarter, the highest rate in two years.  It was primarily driven by consumer spending.  From the linked WSJ article:

Tuesday’s report also showed that gross domestic product, a broad measure of the goods and services produced across the economy, expanded at an inflation- and seasonally adjusted annual rate of 3.2% in the third quarter, the strongest growth in two years.

That was up from last month’s estimate that output rose at a 2.9% pace in the third quarter and beat economists’ expectations for a revision up to 3% growth. The latest reading was boosted by stronger consumer spending, though business investment came in weaker than earlier estimated.

“The U.S. economy is in good shape in the second half of 2016,” PNC Financial Services Group Deputy Chief Economist Gus Faucher said in a note to clients. “After some softness in late 2015 and early 2016, tied to an inventory correction and a downturn in energy production, growth has picked back up.”

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