Gross Domestic Product Just Shy Of Expectations In 3rd Quarter

Steady domestic spending helped to prop up GDP growth in the third-quarter which came in at an annualized 1.5 percent, just shy of expectations. Final sales rose a very respectable 3.0 percent in the quarter in a gain that points to underlying momentum for the fourth quarter. Both residential and nonresidential investment slowed in the third quarter with both net exports and inventories also pulling down GDP. The price index came in a little lower than expected at plus 1.2 percent. Not a great result but not bad either.

Recent History Of This Indicator:
Real GDP, after rising 3.9 percent in the second quarter, is expected to slow to a modest plus 1.7 percent in the first estimate for the third quarter. Wide slowing is expected though residential investment, in a reflection of housing strength, is expected to be a plus. Net exports and nonresidential fixed investment are expected to be negatives, as are inventories as businesses grew cautious over the outlook.