Investment Review & Outlook Archive |
RECENT INVESTMENT REVIEWS & OUTLOOK |
The U.S Economy – Third Quarter Growth Surged: On October 26, the Commerce Department reported that U.S. Gross Domestic Product (GDP) surged 4.9% for the recently concluded third quarter, the fastest pace since 2021. This compared with a 2.4% rise in GDP for the previous quarter and 2.0% for the first quarter of 2023. Stronger than expected consumer spending (two-thirds of overall GDP) fueled the rapid rate of expansion, despite the higher cost of borrowing and high inflation. Spending on travel and entertainment was a standout, supported by the strong labor market and savings accumulated during the pandemic. Consumer credit card debt also rose to an all-time high of over a trillion dollars and helped source expenditures. Government outlays and a buildup in inventory levels, especially in the automotive industry, also contributed to the third quarter’s strong economic expansion. For the fourth quarter of 2023, and into 2024, recent economic strength isn’t expected to continue at the same pace as the third quarter. Consumers are increasingly mindful of inflationary pressures and this is having a significant impact on their spending. Read More |