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Q3 GDP Stronger Than Previously Reported

The U.S. economy grew even faster in the third quarter than previously estimated, CNBC reports.

What’s going on: “Gross domestic product, a measure of all goods and services produced during the three-month period, accelerated at a 5.2% annualized pace, the [Commerce Department]’s second estimate showed. The acceleration topped the initial 4.9% reading and was better than the 5% forecast from economists polled by Dow Jones.”

  • The upward revision was owed mostly to “nonresidential fixed investment,” such as the purchase of equipment, buildings and intellectual property, and spending by state and local governments.

However … Consumer spending was revised downward and is now estimated to have risen just 3.6%, not 4% as initially reported.

What to expect: “Even with robust growth in Q3, demand is expected to slow moving forward,” said NAM Chief Economist Chad Moutray. “The U.S. economy is expected to grow by 2.5% and 2.0% in 2023 and 2024, respectively, with 2.4% growth in Q4. The probability of a ‘soft landing’ has increased in recent weeks, but there continue to be sizable downside risks in the economic outlook.”

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