US GDP Rose by 2.6% in Q3
US GDP Rose by 2.6% in Q3
US GDP Rose , by 2.6% in Q3.
NBC News reports that America's economy had its first duration of positive growth for the year.
According to the Bureau of Economic Analysis, gross domestic product (GDP) rose 2.6% in the third quarter.
That percentage exceeded the Dow Jones estimate of 2.3%.
President Biden took to Twitter after the report was released.
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However, NBC News reports that the increase is largely attributed to a narrowing trade deficit which economists don't expect to see again in future quarters.
Increased consumer and government spending, as well as nonresidential fixed investment, propped up gains too.
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Increased consumer and government spending, as well as nonresidential fixed investment, propped up gains too.
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But gains were offset by drops in private inventories and residential fixed investment.
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Overall, while the 2.6% rebound in the third quarter more than reversed the decline in the first half of the year, we don’t expect this strength to be sustained, Paul Ashworth, chief North America economist at Capital Economics, via CNBC.
Exports will soon fade and domestic demand is getting crushed under the weight of higher interest rates.
We expect the economy to enter a mild recession in the first half of next year, Paul Ashworth, chief North America economist at Capital Economics, via CNBC