US GDP Grew in Q3 After Shrinking in First Half of 2022
Summary from the AllSides News Team
U.S. gross domestic product (GDP) grew by 2.6% in the three-month period from July to September, according to the U.S. Commerce Department, in the first posting of positive growth in 2022.
Kay Quotes: "The increase in the third quarter primarily reflected increases in exports and consumer spending that were partly offset by a decrease in housing investment," according to the report. "We don’t expect this strength to be sustained," said Paul Ashworth, Capital Economic's chief North America economist. "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."
For Context: The GDP shrank from January to June, sparking talk of a recession, and policymakers have been fighting against the highest levels of inflation in more than 40 years. Price surges have been pushed by monetary stimulus that is still working its way through the financial system, and energy market disruption amid Russia's invasion of Ukraine and U.S. sustainability initiatives.
How the Media Covered It: Sources across the political spectrum still noted fears of a recession lingering, with right-rated sources highlighting those concerns more prominently.
Featured Coverage of this Story
From the Left
US economy returned to growth last quarter, expanding 2.6%
The U.S. economy grew at a better-than-expected 2.6% annual rate from July through September, snapping two straight quarters of economic contraction and overcoming punishingly high inflation and interest rates.
Thursday’s estimate from the Commerce Department showed that the nation’s gross domestic product — the broadest gauge of economic output — grew in the third quarter after having shrunk in the first half of 2022. Stronger exports and steady consumer spending, backed by a healthy job market, helped restore growth to the world’s biggest economy.
The latest GDP report comes as...
From the Center
U.S. GDP accelerated at 2.6% pace in Q3, better than expected as growth turns positive
The U.S. economy posted its first period of positive growth for 2022 in the third quarter, at least temporarily easing inflation fears, the Bureau of Economic Analysis reported Thursday.
GDP, a sum of all the goods and services produced from July through September, increased at a 2.6% annualized pace for the period, against the Dow Jones estimate for 2.3%.
That reading follows consecutive negative quarters to start the year, meeting a commonly accepted definition of recession, though the National Bureau of Economic Research is generally considered the arbiter of downturns...
From the Right
US GDP grows 2.6% in the third quarter, but recession fears linger
The U.S. economy rebounded over the summer after shrinking for the first six months of the year, but the rebound does little to allay fears that the world's largest economy is headed toward a recession as it confronts painfully high inflation and rising interest rates.
Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 2.6% on an annualized basis in the three-month period from July through September, the Commerce Department said in its first reading of the data Thursday.
Refinitiv economists expected the report to show...
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