This year’s growth has nothing to do with increased wealth for all. Federal budget and inflation maintain a persuasive illusion. That’s why it’s extremely difficult for all to enforce the debt ceiling…
The Commerce Department’s second estimate revealed that the U.S. economy experienced even stronger growth in the third quarter than initially reported, driven by better-than-expected business investment and increased government spending. The gross domestic product (GDP), which measures all goods and services produced in the three-month period, expanded at an annualized rate of 5.2%, surpassing the initial 4.9% reading and exceeding the 5% forecast by economists polled by Dow Jones.
The upward revision was mainly attributed to a boost in nonresidential fixed investment, encompassing structures, equipment, and intellectual property, which showed a 1.3% increase. However, this marked a significant decline from previous quarters. Government spending also played a role in lifting the Q3 estimate, rising by 5.5% from July to September. On the downside, consumer spending saw a downward revision, with an increase of 3.6% compared to the initial estimate of 4%.
In terms of inflation, the personal consumption expenditures price index, closely monitored by the Federal Reserve, rose by 2.8%, a 0.1 percentage point downward revision. On the other hand, the chain-weighted price index saw a 3.6% increase, a 0.1 percentage point upward adjustment. Corporate profits surged by 4.3% during the period, a significant improvement from the 0.8% gain in the second quarter.
