The first estimate for third quarter GDP in the US beat Wall Street expectations and provides another encouraging data point
The first estimate for third quarter GDP in the US beat Wall Street expectations and provides another encouraging data point. Advance GDP registered at 3.5%, a hefty beat compared to the 3% expected. While it's lower than last quarter's 4.6%, the number is well within the acceptable range for an improving economy. The consumption portion of GDP contributed 1.2% of the total 3.5% - a decline from last quarter but still solid growth. Goods purchased fell from Q2, but the services component increased. Probably the most encouraging number in the report is the 0.8% contribution from government spending, up from just 0.3% last quarter. Budget cuts obviously hurt the government's ability to spend, so today's results are an important signal. Perhaps governments (national, state, and local) are collecting enough revenue to begin an increase in spending once again. We'll see what later revisions have in store. (VIEW LINK)
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