GDP Grows 2.6%

[mystery-ak]

GDP Grows 2.6%

John Carney 27 Oct 2022

The U.S. economy over this summer clawed its way out of the hole it had been squirming through in the first half of the year.

Gross domestic product, a key barometer of economic output, grew 2.6 percent in the third quarter of the year, the Commerce Department said Thursday. That followed two consecutive quarters in which the economy contracted, a traditional marker of a recession.

The reprieve from economic contraction may be brief. A consensus of economists expects the economy will be in a recession in the next 12 months as the Federal Reserve tightens financial conditions in an effort to squeeze excessive inflation out of the economy. Nearly 60 percent of the American public believes the economy already is in a recession.

Economists had expected GDP would grow at a seasonally-adjusted, annualized rate of 2.3 percent after adjusting for inflation. In the first quarter of the year, the economy shrank at a 1.6 percent rate. In the second quarter, it shrank 0.6 percent.

The estimates of GDP are frequently revised from the figures first reported a month after the close of the quarter. The first quarter was initially reported as a 1.4 percent contraction and revised down in each of the two subsequent monthly estimates. The second quarter was initially reported as a 0.9 percent contraction and was revised up.

GDP is a composite of factors that add and subtract from the topline number. On the plus side, exports grew and imports fell, consumer spending rose, business investment in structures was up, federal government spending increased, as did state and local government spending. The minuses were a decline in housing and private inventory investment by businesses.

more
https://www.breitbart.com/economy/2022/10/27/third-quarter-2022-gdp/

[libertybele]

GDP growth rebounded to 2.6% rate in third quarter in reprieve from recession fears

Gross domestic product grew at a 2.6% annual rate in the third quarter after declining in the first half of the year, the Bureau of Economic Analysis reported Thursday morning, an uptick that should temporarily allay fears the United States is in recession.

The increase in GDP comes amid fears that the country faces a recession thanks to the Federal Reserve's efforts to raise interest rates to slow economywide spending in order to bring down inflation.

Thursday's report showed that household spending is decelerating but still holding up, an encouraging sign for the overall health of the economy but also an indication that the most significant effects of the Fed's campaign have yet to take hold.

The housing market, though, is clearly taking a massive hit from the rate hikes, which have translated into much higher mortgage rates. Housing investment shrunk at a massive 26.4% annual rate.

"Looking ahead, risks are to the downside, to consumption in particular, as households continue to face challenges from high prices and likely slower job growth going forward," wrote Rubeela Farooqi, chief U.S. economist for High Frequency Economics.....

https://www.washingtonexaminer.com/policy/economy/gdp-rebounded-to-2-6-rate-in-third-quarter-in-reprieve-from-recession-fears

[DefiantMassRINO]

Ironically, is that GDP growth inflationary?

May be another useless statistic to the unwashed masses.  That number doesn't help their costs of living - taxes, energy, food, housing - in time for the midterms.

[libertybele]

Ironically, is that GDP growth inflationary?

May be another useless statistic to the unwashed masses.  That number doesn't help their costs of living - taxes, energy, food, housing - in time for the midterms.

IMO it's just a number created by the gov't to try to make things look good. Just ask Joe, he'll tell you the economy is doing great.

[Kamaji]

IMO it's just a number created by the gov't to try to make things look good. Just ask Joe, he'll tell you the economy is doing great.

[Kamaji]

It's a figure released by the government that is controlled by FJB and the DNC, and which has been weaponized for partisan political purposes.  This figure is about as reliable as were the Iraqi government's figures during the U.S. invasion of Iraq.

[cato potatoe]

I believe this was expected after two quarters of contraction.  If the fed is serious about inflation, it could play out like the double dip in the early 80s. 

[Free Vulcan]

U.S. GDP Grows 2.6% in Third Quarter Driven by Energy Exports and Declining Goods Imports, While Domestic Economy Shrinks

...in the third quarter we exported hundreds of billions worth of energy products, including massive liquified natural gas (LNG) sales to Europe, and oil sales to the global market from the strategic petroleum reserve.  We also sold billions in weapons to Europe. Those sales are calculated as exports, lifting the GDP number (Table 1).  At the same time, imports of durable goods into the United States collapsed; meaning less was deducted from the GDP.  The net import/export impact on the GDP dynamic was +2.77% (Table 2).

Meaning the third-quarter import/export dynamic alone contributed 2.7% growth to the percentage of change for the prior period.  However, the total GDP only rose 2.6%, because the actual economic value created domestically got smaller.  We made less internally, sold less internally and consumers purchased less internally...

https://theconservativetreehouse.com/blog/2022/10/27/u-s-gdp-grows-2-6-in-third-quarter-driven-by-energy-exports-and-declining-goods-imports-while-domestic-economy-shrinks/