Q3's GDP Growth Could Be Rosiest of Year
Economists expect it will be revised upward, to 2.9%: Bloomberg
By Matt Cantor, Newser User
Posted Nov 19, 2012 11:32 AM CST
In this Wednesday, Sept. 26, 2012, file photo, a "sold" sign sits out in front of a home in Riverview, Fla.   (AP Photo/Chris O'Meara, File)

(Newser) – The US gross domestic product appears to have actually grown at a 2.9% annual rate between July and September, the fastest quarterly growth seen this year. That rate, via analysts at Goldman Sachs and Barclays, is higher than the Commerce Department's initial estimate of 2.0%—and it suggests the economy will take Hurricane Sandy's damage in stride. Improving housing and job markets, as well as better household finances, are spurring consumer confidence and spending, Bloomberg notes.

The growth "doesn’t make us invulnerable," notes a Barclays executive. "But it’s better than if the economy had already been slowing sharply and then we were hit" with events like Sandy. The hurricane could cut half a percentage point from fourth-quarter GDP, says the Goldman exec, and the fiscal cliff also poses a threat. But with "solid momentum" going into the fourth quarter, the US economy should be able to keep growing, says the Barclays economist. "The economy is somewhat stronger than people are giving it credit for," notes an ING director. Any upward revision to Q3 GDP will be reported on Nov. 29.

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Showing 3 of 29 comments
SilenceDogood
Nov 20, 2012 4:43 AM CST
Any perceived growth the US economy is due to quantum easing by the Feds. The enormous injection of cash into our system is giving buoyancy to our economy; the problems will occur when the QE finally stops. It will be akin to a hangover of epic proportions, why do you think Bernanke is bailing out?
KurtRambis4va
Nov 19, 2012 2:36 PM CST
3Q was great, but the 4Q numbers are going to be horrible.... My industry (housing) has tanked since election day and things are very very shaky. We've had people back out of agreements over the past two weeks and the phones and meetings have pretty much halted. Every other industry looks bad from the people I've talked to. Just wait and see what this administration brings! Oh and before you say "Fox news is fueling the fears", I ask you, what is more likely to trigger a bad economy.... Dumb television watchers or actual policies?
UnclePaul
Nov 19, 2012 12:45 PM CST
I hope the GOP will be able to overcome this horrible news before the 2016 elections.