Whoosh, Went The Economy In Q3 - Fed Needs To Watch Out, Economy Is Running Hot

Wolf Richter 4.96K Follower s Follow 5 Share Save Play ( 10min ) Comment (1) Summary US GDP grew by an annual rate of 4.3% in Q3, adjusted for inflation, after the 3.8% growth in Q2 and the -0.7% decline Q1, according to the Bureau of Economic Analysis. Not adjusted for inflation, "current-dollar GDP" grew by an annual rate of 8.2% to $31.1 trillion, after the 6.0% growth in Q2. The core of the private US economy, "Final sales to private domestic purchasers," rose by an annual rate of 3.0% in Q3, adjusted for inflation - the best growth rate since Q4 2023. So at the core, the US economy continues to hum along at solid growth rates. Despite the sour mood as depicted by consumer sentiment surveys, consumer spending, adjusted for inflation jumped by 3.5%, the highest since the red-hot quarters last year. Government consumption expenditure and investment also rose after two quarters of declines. Dilok Klaisataporn/iStock via Getty Images Strong consumer spending growth (despite sour mood), big improvement of trade deficit and government spending growth after two quarters of declines. Tuesday’s GDP report, delayed by the government shutdown, was the “initial” report for the third quarter. Data collection This article was written by Wolf Richter 4.96K Follower s Follow Wolf Richter is the analyst at, and the publisher of, WOLF STREET, where he discusses business, finance, and money. Core focus: Federal Reserve, credits, equities, residential and commercial real estate, the auto industry, trade, consumers, and energy. He started this operation in 2011. Prior to that, he worked for 20 years in C-level positions, including 10 years in the auto industry. MBA from the University of Texas at Austin.

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