Strong Q3 Economic Growth in the U.S. Driven by Consumer Spending Surpasses Expectations

InflationMoney Matters
Written By Jennifer Joslyn

The U.S. economy saw stronger-than-expected growth in the third quarter, expanding at a 4.9% annualized rate, driven primarily by robust consumer spending. This growth rate was the fastest in almost two years, surpassing economists' predictions of 4.3%. While some expect growth to slow in the fourth quarter, the overall outlook remains strong, supported by a resilient consumer and a robust labor market.

Read more at Financial Times >

Featured
Americans Are Misjudging Economy, Per Biden Administration
Americans Are Misjudging Economy, Per Biden Administration

A recent Harris poll for The Guardian reveals widespread misconceptions about the U.S. economy. Most Americans (56%) believe the country is in a recession, but it's not

Americans Are Split on Economy Despite Growth
Americans Are Split on Economy Despite Growth

More than half of Americans believe the U.S. is in a recession, even though the GDP has been growing for several years.

Experts Are Warning of Economic Downturn
Experts Are Warning of Economic Downturn

Nancy Lazar from Cornerstone Macro is sounding the alarm about a possible economic downturn.

Fed Finds Comfort in Cooler Job Growth and Wage Increases
Fed Finds Comfort in Cooler Job Growth and Wage Increases

On Friday, Federal Reserve officials breathed a sigh of relief as April’s job data revealed a cooling in wage growth and hiring rates that hark back to pre-COVID-19 days.

Taking a Look at Recent Layoffs in the Freight and Logistics Industry
Taking a Look at Recent Layoffs in the Freight and Logistics Industry

Over the past few weeks, the freight and logistics industry has witnessed significant layoffs across several states including Florida, Georgia, Illinois, Michigan, and Texas.

Wealthy Americans Building "Passport Portfolios" for Security and Flexibility
Wealthy Americans Building "Passport Portfolios" for Security and Flexibility

Wealthy American families are increasingly obtaining second, or even multiple, citizenships and residences, a trend highlighted by Henley & Partners, a law firm specializing in high-net-worth citizenships.

China's Satirical Shift is Navigating Economic Realities and State Narratives
China's Satirical Shift is Navigating Economic Realities and State Narratives

The rise of dark satire in China's online realm sheds light on a growing phenomenon.

Balancing Inflation and Recession Risks Amid Fed Rate Cut Debates
Balancing Inflation and Recession Risks Amid Fed Rate Cut Debates

In 2021 and 2022, as inflation surged, the Federal Reserve was criticized for delaying interest rate hikes, allowing prices to soar. Now, with inflation easing, there's concern the Fed might move too slowly to cut rates, risking a recession, some economists argue.

Major Layoffs in Washington and Oregon as Logistics Company Shifts Operations
Major Layoffs in Washington and Oregon as Logistics Company Shifts Operations

Major logistics company, Penske Logistics, recently filed notices indicating plans to cut over 200 truck driver and warehouse jobs in Washington and Oregon by March 31.

Strong Job Growth and Wage Increases Continue in U.S. Economy Amidst Rising Interest Rates
Strong Job Growth and Wage Increases Continue in U.S. Economy Amidst Rising Interest Rates

In January, the U.S. economy added a surprising 353,000 jobs, surpassing economists' predictions of 177,000.

Citigroup to Lay Off 20,000 Employees Following Worst Quarterly Loss in 15 Years
Citigroup to Lay Off 20,000 Employees Following Worst Quarterly Loss in 15 Years

Citigroup is set to trim its workforce by 20,000 employees over the next two years, according to CFO Mark Mason, following a dismal fourth quarter in 2023 where the bank reported a net loss of $1.8 billion, its worst in 15 years.

Economic Uncertainty Looms Over 2024 Presidential Election
Economic Uncertainty Looms Over 2024 Presidential Election

As we gear up for 2024 - a big election year - it's hard not to think of James Carville's famous line from 1992, "It's the economy, stupid."

2023 Showcased Mixed Economic Shifts in the United States
2023 Showcased Mixed Economic Shifts in the United States

In 2023, the U.S. economy saw a combination of positive and negative trends.

Yellen Emphasizes Stabilizing U.S.-China Relationship and Collaboration on Key Issues
Yellen Emphasizes Stabilizing U.S.-China Relationship and Collaboration on Key Issues

U.S. Treasury Secretary Janet Yellen expressed the importance of stabilizing the U.S.-China relationship during a dinner hosted by the U.S.-China Business Council.

Private Sector Job Growth Slows in November, Wages Stagnate
Private Sector Job Growth Slows in November, Wages Stagnate

Private sector job creation in November continued to slow, with companies adding 103,000 workers, slightly below October's 106,000 and missing estimates.

Major Economic Concerns Amid Record Thanksgiving Shopping Weekend
Major Economic Concerns Amid Record Thanksgiving Shopping Weekend

A recent Fox News poll revealed that more than 75% of Americans are worried about the state of the economy.

US Consumer Confidence Declines as Inflation Worries and Global Conflicts Weigh on Sentiment
US Consumer Confidence Declines as Inflation Worries and Global Conflicts Weigh on Sentiment

Americans' confidence in the US economy has declined, with the preliminary reading on consumer sentiment for November hitting its lowest level since May at 60.4, below economists' expectations of 63.7.

Strong Q3 Economic Growth in the U.S. Driven by Consumer Spending Surpasses Expectations
Strong Q3 Economic Growth in the U.S. Driven by Consumer Spending Surpasses Expectations

The U.S. economy saw stronger-than-expected growth in the third quarter, expanding at a 4.9% annualized rate, driven primarily by robust consumer spending.

BlackRock CEO Larry Fink Expresses Concern Over Lack of Hope Amidst High Levels of Fear in Financial Markets
BlackRock CEO Larry Fink Expresses Concern Over Lack of Hope Amidst High Levels of Fear in Financial Markets

BlackRock CEO Larry Fink, a prominent figure on Wall Street, has expressed concern over the high levels of fear he's witnessing among consumers and businesses, which he says is missing the essential ingredient of hope for a healthy financial outlook.

Resilient U.S. Economy Spurs Steady Fuel Demand, Industrial Slowdown Continues
Resilient U.S. Economy Spurs Steady Fuel Demand, Industrial Slowdown Continues

Despite earlier predictions of an economic recession and declining oil demand, the U.S. economy has remained resilient, leading to stable demand for gasoline and jet fuel.

Moody's Issues Warning of Potential Credit Rating Downgrade for 6 Major US Banks
Moody's Issues Warning of Potential Credit Rating Downgrade for 6 Major US Banks

Credit ratings agency Moody's has placed the credit ratings of six major US banks, including Bank of New York Mellon, State Street, and Northern Trust, under review for a possible downgrade.

Resilient U.S. Job Market Defies Recession Predictions Amid Cooling Conditions
Resilient U.S. Job Market Defies Recession Predictions Amid Cooling Conditions

The job market in the United States has shown signs of cooling over the summer, but it remains strong enough to dispel fears of a recession despite higher interest rates.

The US has not gone through a recession
The US has not gone through a recession

According to a recent report by ISS ESG, a full-blown recession has not occurred, but there has been a lackluster performance in a low-growth environment, coupled with high inflation, interest rates, and tighter liquidity due to a recent banking crisis.

Critics Question Biden's Economic Agenda as Kevin O'Leary Warns of Crisis for Small Businesses
Critics Question Biden's Economic Agenda as Kevin O'Leary Warns of Crisis for Small Businesses

Critics continue to question the true cost of President Biden's economic agenda, despite his promotion of "Bidenomics" during his reelection campaign.

Federal Reserve Chair Powell Reaffirms Expectation of Further Rate Hikes Amid Persistent High Inflation
Federal Reserve Chair Powell Reaffirms Expectation of Further Rate Hikes Amid Persistent High Inflation

Federal Reserve Chair Jerome Powell reaffirmed the likelihood of raising interest rates at least once more this year due to persistent inflation in the service sector and a tight job market.

Examining the Controversy & Assessing the Future of ESG Reporting
Examining the Controversy & Assessing the Future of ESG Reporting

During the Economist Impact's 3rd annual "Sustainability Week US" in Washington, D.C., Terrence Keeley and Witold J. Henisz engaged in a debate over the relevance and accuracy of environmental, social, and corporate governance (ESG) reporting.

Surprising Surge in US Job Growth as Economy Adds 339,000 New Positions in May
Surprising Surge in US Job Growth as Economy Adds 339,000 New Positions in May

US job growth defied expectations in May, with employers adding 339,000 jobs, surpassing the forecasted 190,000 jobs.

Economists Predict Prolonged High Inflation Throughout the Year
Economists Predict Prolonged High Inflation Throughout the Year

Despite the Federal Reserve's best efforts to curb inflation, recent assessments indicate that their progress has fallen short of initial expectations.

Combining Deficit Reduction Measures with an Increase in the Debt Limit
Combining Deficit Reduction Measures with an Increase in the Debt Limit

A recent poll conducted by AP-NORC revealed that approximately two-thirds of Americans expressed growing concerns over the potential impact on the economy if the US debt limit is not raised.

Failure of First Republic Bank can indicate a banking crisis on the horizon
Failure of First Republic Bank can indicate a banking crisis on the horizon

JPMorgan Chase has acquired the majority of the assets of First Republic Bank following the federal government's seizure of the regional bank.

Jennifer Joslyn
Previous

Hostage Crisis Unfolds as South African Miners Held Underground Amid Union Dispute
Next

UN Report Warns of Impending Global Tipping Points with Irreversible Consequences