Q3 GDP Revised down to 2.0% Growth

The government revised lower its estimate for Q3 GDP growth. They now say that the economy grew at a real rate of 2.0% during the third quarter. Last month, they revised the initial report of 1.5% growth up to 2.1%.

The July through September reading marks a sharp slowdown from the second quarter’s 3.9% rate of expansion, reflecting the drag from inventory drawdown and a deceleration in consumer and business spending.

The reading suggests 2015 is on track to close out another year of steady if unspectacular growth, bolstered by a firming job market, strong home sales and pockets of wage increases. But headwinds remain: Despite low gasoline prices, consumer spending has been muted throughout the year. Weakness in overseas economies, a strong dollar and low oil prices have weighed on the manufacturing, mining and energy sectors at home, damping business investment and exports and causing thousands of layoffs.

What I think is interesting is that real GDP has grown by a fairly constant rate over the last six years. The trend is slightly over 2%, and last quarter matched it almost perfectly.

Posted by on December 22nd, 2015 at 9:02 am


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