Third quarter GDP grew at a blockbuster 4.9% rate DESPITE higher interest rates

[RobDownSouth]

Consumer GDP grew at an astonishing 4.9% in the third quarter, far exceeding the estimate of 4.2% and essentially more than making up for second quarters anemic 2.1% growth. Consumers seem to be spending more.

This is the highest GDP quarter since the first Covid recovery boom in 2021.

Mortgage rates are at 5 year highs at 7.6% but month-to-month inflation has cooled to 3.7% down from 9.1% earlier this summer.

Consumers shelled out a lot of money for luxury vacations over the summer.

You wanted a LINK? You GOT a link!

The usual caveat: The RWCJ will be along shortly to man-splain that this is actually BAD news for President Joe Biden and the Democratic party.

 

[Lazaran]

Consumer GDP grew at an astonishing 4.9% in the third quarter, far exceeding the estimate of 4.2% and essentially more than making up for second quarters anemic 2.1% growth. Consumers seem to be spending more.

This is the highest GDP quarter since the first Covid recovery boom in 2021.

Mortgage rates are at 5 year highs at 7.6% but month-to-month inflation has cooled to 3.7% down from 9.1% earlier this summer.

Consumers shelled out a lot of money for luxury vacations over the summer.

You wanted a LINK? You GOT a link!

The usual caveat: The RWCJ will be along shortly to man-splain that this is actually BAD news for President Joe Biden and the Democratic party.

Also:

Wasn’t the U.S. supposed to have been plunged into something worse than a combination of the Great Depression and Armageddon immediately upon Joe Biden being sworn in as President???



Even with Putin and the "republican" insurrectionists doing everything in their power to sabotage the American economy and Joe Biden’s presidency, things are still chugging along.

 

[LLCox]

When you are fighting two wars and printing money like it's going out of style the GDP can only grow. Smoke and mirrors.

 

[Dribble]

Doesn't mean anything if household income doesn't increase.

Here is how it will play out next election....people will look at their monthly leftover income and ask...am I better off? I can't afford a new car. Can't afford a house. Can barely afford health insurance. Not that Republicans would do better...but the reality is those numbers mean nothing to the average person

 

[Rightguide]

Consumer GDP grew at an astonishing 4.9% in the third quarter, far exceeding the estimate of 4.2% and essentially more than making up for second quarters anemic 2.1% growth. Consumers seem to be spending more.

This is the highest GDP quarter since the first Covid recovery boom in 2021.

Mortgage rates are at 5 year highs at 7.6% but month-to-month inflation has cooled to 3.7% down from 9.1% earlier this summer.

Consumers shelled out a lot of money for luxury vacations over the summer.

You wanted a LINK? You GOT a link!

The usual caveat: The RWCJ will be along shortly to man-splain that this is actually BAD news for President Joe Biden and the Democratic party.

From CNBC:

“This report confirmed what we already knew: The consumer went on a shopping spree in the third quarter,” said Michael Arone, chief investment strategist for U.S. SPDR Business at State Street Global Advisors. “I don’t think anything in this report changes the outlook for monetary policy. That’s why I don’t think you’re seeing an overreaction from markets.”

While the report could give the Federal Reserve some impetus to keep policy tight, traders were still pricing in no chance of an interest rate hike when the central bank meets next week, according to CME Group data. Futures pricing pointed to just a 27% chance of an increase at the December meeting following the GDP release.

“Investors should not be surprised that the consumer was spending in the final months of the summer,” said Jeffrey Roach, chief economist at LPL Financial. “The real question is if the trend can continue in the coming quarters, and we think not.”

https://www.cnbc.com/2023/10/26/us-...n-the-third-quarter-better-than-expected.html

It's about time Something positive happened after Q1-2.2% Q2-2.1%.

 

[butters]

there are more than a few 'average people' currently earning better wages/getting better time off/health packages DIRECTLY or TACITLY because of support/actions taken by President Biden's administration; school teachers are next to consider striking in some areas.

while supermarkets still take advantage and price gouge this long out from covid transportation/supply issues, and companies in some red states decide child-labour (for cheaper costs) is the way to go right along with suppressing wages/health packages, there will be people feeling their wages aren't feeling any kind of benefit. Mostly red states, and their red politicians will blame it on Bidenomics rather than examine the reality of greed and exploitation they're more than happy to sign onto in their constituencies.

 

[CenSore]

4.9% GDP.Amazing what a $2 trillion deficit & $600B in debt issuance in one month can do.


Inject a terminal patient with cocaine and you'll see some real short-term spunkinessBut it just makes the terminal condition worse soon after

 

[icanhelp1]

From CNBC:

“This report confirmed what we already knew: The consumer went on a shopping spree in the third quarter,” said Michael Arone, chief investment strategist for U.S. SPDR Business at State Street Global Advisors. “I don’t think anything in this report changes the outlook for monetary policy. That’s why I don’t think you’re seeing an overreaction from markets.”

While the report could give the Federal Reserve some impetus to keep policy tight, traders were still pricing in no chance of an interest rate hike when the central bank meets next week, according to CME Group data. Futures pricing pointed to just a 27% chance of an increase at the December meeting following the GDP release.

“Investors should not be surprised that the consumer was spending in the final months of the summer,” said Jeffrey Roach, chief economist at LPL Financial. “The real question is if the trend can continue in the coming quarters, and we think not.”

https://www.cnbc.com/2023/10/26/us-...n-the-third-quarter-better-than-expected.html

It's about time Something positive happened after Q1-2.2% Q2-2.1%.

People paying more out of their wallets due to a 17% increase in inflation over three years, using credit cards more often at high interest rates, higher gas prices results in a facade GDP reading. Bidenomics is a complete sham.

 

[schism666]

4.9% GDP.Amazing what a $2 trillion deficit & $600B in debt issuance in one month can do.


Inject a terminal patient with cocaine and you'll see some real short-term spunkinessBut it just makes the terminal condition worse soon after

don junior is terminal

 

[ll74]

4.9% GDP.Amazing what a $2 trillion deficit & $600B in debt issuance in one month can do.


Inject a terminal patient with cocaine and you'll see some real short-term spunkinessBut it just makes the terminal condition worse soon after

Good point....we need more revenue.

 

[schism666]

People paying more out of their wallets due to a 17% increase in inflation over three years, using credit cards more often at high interest rates, higher gas prices is a false GDP reading. Bidenomics is a complete sham.

the flip side of that is that people are spending less because things are more expensive due to 3 years of inflation.

can't be both.

 

[Dribble]

https://www.census.gov/library/publications/2023/demo/p60-279.html

Now...of course they haven't updated this to last year's data yet...but looking at average real household income between 2021 and 2022...it only decreased over 2%. There are inherent issues using averages when looking at income...but if they would look at it correctly it would have been worse.

 

[icanhelp1]

the flip side of that is that people are spending less because things are more expensive due to 3 years of inflation.

can't be both.

Paying more for the same product, not spending less.

 

[ll74]

Paying more for the same product, not spending less.

Does that increase GDP with the higher wages or decrease?

Oh right.....it increases!

 

[schism666]

Paying more for the same product, not spending less.

we are buying less because we can't afford it. you just said that.

can't be both.

 

[dkovic77]

we are buying less because we can't afford it. you just said that.

can't be both.

Remember, logic is not strong with this one. Neither is…we’ll just about everything.

He sure is stubborn though, he has that.

 

[Fuzzy1975]

we are buying less because we can't afford it. you just said that.

can't be both.

lol he is so stupid,he can't even figure out which side of his mouth he arguing out of....

 

[RobDownSouth]

lol he is so stupid,he can't even figure out which side of his mouth he arguing out of....

As a certain situational minority poster once famously pointed out "Consistency is a luxury we can no longer afford if we aim to achieve three digit shitpost counts on a daily basis!"

 

[schism666]

Remember, logic is not strong with this one. Neither is…we’ll just about everything.

He sure is stubborn though, he has that.

lol he is so stupid,he can't even figure out which side of his mouth he arguing out of....

As a certain situational minority poster once famously pointed out "Consistency is a luxury we can no longer afford if we aim to achieve three digit shitpost counts on a daily basis!"

ican'thelp but being an innumerate has many trump NFTs.

 

[AlexBailey]

4.9% GDP.Amazing what a $2 trillion deficit & $600B in debt issuance in one month can do.


Inject a terminal patient with cocaine and you'll see some real short-term spunkinessBut it just makes the terminal condition worse soon after

Raise taxes on the upper end of the economy back to levels that can sustain the US government and we won’t have to raise interest rates or borrow from the fed.

There is too much borrowed cash in the economy and no mechanism to tax it back out.

Raising interest rates to slow the economy makes it harder for people to borrow while giving the wealthiest Americans more leverage to buy real estate and raise the cost of living for everyone.

Federal spending is similar to last year but tax revenues are way down - hence increased deficit spending.

Do away with the Trump tax cuts for starters.