https://www.barrons.com/articles/us-gdp-data-report-release-today-320a288bThe U.S. economy once again expanded at a healthy pace, the latest data prove, even as inflation continued to cool during the third quarter. That should keep fears of a downturn at bay, while giving Federal Reserve officials the flexibility to implement further interest-rate cuts.
Inflation-adjusted, or real, gross domestic product grew at an annualized rate of 2.8% over the three months ended in September, according to the first estimate by the Bureau of Economic Analysis released Wednesday. The consensus call among economists surveyed by FactSet was for growth of 2.6% in the third quarter, though Bloomberg’s forecast was for 2.9%.
Wednesday’s solid third-quarter growth is a tick slower from real GDP growth of 3% during the second quarter, but still between the 2% and 3% range that economists consider to be a healthy rate of growth in developed economies. The economy expanded 1.6% during the first three months of the year.
The latest data show that the U.S. economy remains robust, with the third-quarter report pushing real GDP trends even further above the Congressional Budget Office’s forecasts of just 1.5% growth.
“Though GDP is backward-looking, it sends a clear message that the economy is doing well, and inflation is moderating, good news for the Federal Reserve,” writes Ryan Sweet, chief U.S. economist at Oxford Economics. He noted that another quarter of healthy GDP growth should stabilize expectations and reduce the risk of a sudden and significant increase in layoffs.
