Gross domestic product grew at an annualized rate of 4.9% last quarter, better than expected and indicative of robust economic growth.
The sharp increase came due to contributions from consumer spending, increased inventories, exports, residential investment and government spending.
Consumer spending, as measured by personal consumption expenditures, increased 4% for the quarter after rising just 0.8% in Q2, and was responsible for 2.7 percentage points of the total GDP increase. Inventories contributed 1.3 percentage points. Gross private domestic investment surged 8.4% and government spending and investment jumped 4.6%.
It’s the biggest rise since the last months of 2021, reports the BBC.
But a strong jobs market meant that consumers were able to ask for bigger pay packets and keep spending on concerts, movies or holidays over the summer.
This is terrible, though, say dial-a-quote guys returning calls fastest Thursday.
“Of course, retail sales have been quite strong for the last few months and everyone gets quite excited about that, but, actually, if you look at what’s going on, the household savings ratio has been run down, and, in fact, real income growth has been negative for three months,” Watling said.
“So, it’s not quite all good news. I mean, quite the reverse, I think there are some real challenges coming for the U.S. consumer.”
Amateurs. The real journalists just say that it’s bad news in the headlines reporting it. “Global risks weigh on the economy,” “fast spending Americans”, etc.