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Modestly Welcome News on the U.S. Economy Arrived This Morning - Real Time Insight

We have some modestly welcome news on the U.S. economy this morning.

Before its posting this morning, economists looked for U.S. real GDP to grow +1.7% in Q3, a modest gain over a Q2 rate of +1.3%.

In the "advance" estimate released this morning, U.S. real GDP grew +2.0% in Q3. A revised estimate will be released on November 29.

Highlights:

  • Goods buying trumped services purchasing. Consumption increased +2.0 after a +1.5% increase a quarter earlier. Durable good were up a strong +8.5%. Non-durables were up a strong +2.4% , and services were up a lagging +0.8%.

  • In a very telling sign, consumer investment in homes skyrocketed, while businesses stayed pessimistic. Residential fixed investment increased +14.4%, while non-residential fixed investment fell -1.3%.

  • Exports fell -1.3%.

  • Government spending increased +9.6.

  • Inventory subtracted -0.12%.

For investors, this report should be seen as welcome news. Consumption is the primary driver of asset returns.

For those looking for work, we need to see some of that consumer spending and optimism reach into the business sector.

To my fellow editors at Zacks and our many sophisticated readers, please type in below your thoughts on this Q3 GDP release.

(SPYQQQDIAGLD): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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