Overall Economic Growth for Third Quarter, but Economists Suggest Caution

Data published by the Commerce Department on Thursday indicated an expansion of the US economy overall during the third quarter. Economists suggest this is likely due to government spending as well as a narrowing of the trade deficit. GDP grew by 3.5 percent, seasonally adjusted- higher that the 3.1 percent pace projected by Wall Street Journal economists. Jay Feldman, director of US economics research at Credit Suisse, says,

The underlying growth trend seems to be improving gradually, but perhaps less than the headline suggests.”

Economists are concerned whether or not the growth is sustainable, considering the weakness of foreign economies and that the boost in government spending was primarily on defense. Though weak economies abroad have so far strengthened the dollar and hurt US exports, many have rejoiced at the subsequent decline in oil prices. Consumer spending reportedly remains underwhelming- a large indicator of a healthy economy. The labor market, however, looks strong having added approximately 227,000 jobs a month this year accounting for the fastest pace in job growth in over either years.

Read more here- “US Third-Quarter GDP Expands at 3.5% Rate,” (Nick Timiraos and Eric Morath, The Wall Street Journal)

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Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.

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