Headline Roundup • October 26th, 2023
US GDP Grew 4.9% in Q3
Summary from the AllSides News Team
U.S. gross domestic product (GDP) grew 4.9% annually in the third quarter of 2023, beating expectations.
The Details: Economists surveyed by Dow Jones had predicted 4.7% growth in Q3, which would have surpassed the 2.1% annual growth seen in Q2.
Key Quote: “This report confirmed what we already knew: The consumer went on a shopping spree in the third quarter,” said Michael Arone, chief investment strategist for U.S. SPDR Business at State Street Global Advisors. “I don’t think anything in this report changes the outlook for monetary policy. That’s why I don’t think you’re seeing an overreaction from markets.”
For Context: According to the Bureau of Economic Analysis, the increase came amid increases in consumer spending, business inventories, exports, government spending, and residential investment. The Federal Reserve will meet next week to determine if it should raise interest rates or maintain a tight economic policy.
How the Media Covered it: Fox Business (Lean Right bias) suggested concerts and other entertainment were a big driver of the better-than-expected number. ABC News (Lean Left) said the news could complicate the fight to reduce inflation as the economy is "resisting the Federal Reserve's effort to cool price increases with a slowdown."
Featured Coverage of this Story
VALERIE MACON/AGENCE FRANCE-PRESSE/GETTY IMAGES
U.S. economic growth surged this summer, as consumers boosted spending ahead of growing challenges that could limit their ability to maintain the momentum.
Gross domestic product grew at a seasonally- and inflation-adjusted 4.9% annual rate in the third quarter, the Commerce Department reported Thursday. That was the fastest rate since late 2021 and much stronger than economists were anticipating just a few months ago. The economy expanded 2.1% in the second quarter.
This year’s economic resilience could soon face tests, however. Rising long-term interest rates, wars in Ukraine and the Middle East and the possibilities...
The U.S. economy grew at a blistering pace over three months ending in September, more than doubling growth in the previous quarter and rebuking worries about a possible recession. The robust performance, however, complicates the fight to dial back inflation.
Fresh GDP data released on Thursday, which exceeded economist expectations, reinforces other recent indicators of a strong economy resisting the Federal Reserve's effort to cool price increases with a slowdown.
A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S....
Tim Cooper/Getty Images
U.S. consumers treated themselves this summer, scooping up concert tickets to likes of Taylor Swift and Beyonce, singing and dancing to sold-out shows, while also driving record numbers for U.S. air travel.
Gross domestic product (GDP), came in at 4.9%, way above the 4.3% to 4.5% estimates and more than double the second-quarter’s 2.1% read.
"It’s all the kind of revenge spending post-pandemic, which is especially concentrated in the service sector. Of course, you know, the poster child of that this summer is, of course, Taylor Swift," Carl Riccadonna, chief U.S. economist...
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