Posted on 10/29/2015 8:40:09 AM PDT by SeekAndFind
The U.S. economy cooled off in the third quarter as companies cut back production to prevent a worrisome buildup in inventories, particularly of goods destined for foreign markets.
Gross domestic product — the value of everything a nation produces — rose at a 1.5% annual pace from July through September, the government said T hurs day. The U.S. had grown at a crisp 3.9% rate in the second quarter.
The slowdown stemmed mostly from the biggest drawndown in inventories in three years. Companies also cut spending on structures such as oil platforms and commercial buildings.
Yet even as businesses showed more caution, consumers continued to spend money at steady clip, a sign they are not as worried. Consumer spending, the single largest determinant of U.S economic growth, rose at a 3.2% annual pace following an even larger gain in the second quarter.
More confident than at any time since the end of the recession in 2009, consumers have spent heavily on new cars and trucks. Outlays on so-called durable or long-lasting goods climbed 6.7% in the third quarter.
What’s fueled the upturn in spending are higher inflation-adjusted incomes, a residue of cheap gas. Millions of Americans have also found jobs over the past several years, giving them more money to spend.
Economists predict consumer spending will show another healthy gain in the final three months of 2015, potentially pushing GDP back toward the 2.5% range or higher.
"Although the headline number of 1.5% growth was a big weaker than expected, the details were quite good," said Stuart Hoffman, chief economist of PNC Financial Services.
Still, the third-quarter dropoff almost assures the U.S. will fail to break 3% annual growth in 2015 for the 10th straight year. The last time the economy expanded that fast was in 2005.
(Excerpt) Read more at marketwatch.com ...
Unexpectedly cooled off? Perhaps because of Trump’s comment on deporting illegals?
Wait..
WHAT???
Didn’t CNBC’s John Harwood state, WITHOUT RESERVE, that Obama’s Economic Recovery was the greatest, EVAH!, during last night’s children’s table debate??
I wish this had been a topic of the “show” last night. I can’t even use the word debate anymore.
John Harwood should be suspended by NBC for LYING at the end of the debate when he told Trump that the debate’s length was always going to be just two hours.
I’ve never seen someone so blatantly LIE to the public. If they can suspend Brian Williams, they should suspend this utterly BIASED moderator.
“If they can suspend Brian Williams, they should suspend this utterly BIASED moderator.”
Harwood was likely greeted with High-fives and “atta-boys” this morning from the largely Gay, bi or transgendered staffers at NBC News.
He did exactly what NBC Management wanted him to do, even if he came off looking like a moron.
Oh Hillary, might want to hold off ordering the coronation robes just yet, seems Obama wrecked the economy again.
I just hope whoever wins they scrap all the liars who give up these figures.
Unemployment rate at 5.1 lowest since 1972, yea right.
But our unemployment rate is the lowest since...(Sarc)
More like -1.5%.
And they’re playing with numbers.
The part-time salaries cannot be buying huge amounts of product. I just don’t see it. And the major job growth has been part time jobs in the low paying service sector.
I don’t know how they’re fudging the numbers, but they’ve got to be. It FEELS like recession.
I have been scratching my head for the last several years at this same statement made over and over. I guess its one of those "repeat a lie often enough, you start to believe it" cases.
Have SOME sectors seen improvement? Yes. Yet others have further eroded, and some are collapsing. Many areas of this nation have seen absolutely no improvement in the economy - Unemployment and the "labor participation rate" are still, in real terms - at or near record levels.
As a church pastor and an active member of the local ministerial alliance that also operates program to help the poor, homeless, and displaced - we see an incredible volume of people still crushed under this supposedly "recovered" economy - many who have desperately tried for years now to find gainful employment - and who are struggling just to keep food on the table and roof over their heads.
It’s a shrink-to-fit, fake economy for those with government incomes and political influence. Within about a year or a year and a half, oil production will be getting much closer to demand, and prices will increase radically with no end in sight. Some big businesses and governments are trying to position for that. With transportation much more expensive, many regulations (especially local regulations) against manufacturing will need to go away with forced repeals.
According to Zerohedge, the main contributor to the GDP growth were Obamacare penalties.
Same drivel every 3d quarter, e.g., consumers are rushing to buy vehicles that have reduced prices to make room for the next model year inventory....
1.5 minus 3.5 equals NEGATIVE 2 PERCENT SHRINKING ECONOMY.
First they inflated it by 3 percent a couple of years ago, then this year another .5 percent ....thus any number they give you must be reduced by 3.5 percent.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.