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Estimate of Real GDP growth in Q3 is annual 1.9%, longest expansion in US history
[BEA.gov] Real gross domestic product (GDP) increased at an annual rate of 1.9 percent in the third quarter of 2019 (table 1), according to the "advance" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 2.0 percent.comments: This is actually pretty darn good given the headwinds of regional labor shortages, trade issues (especially the one with the PRC) and various municipal and state self sabotage laws (e.g., the various minimum wage jumps, state restrictions on fracking). It probably means no more rate reductions by the Fed this quarter or even the next. Economy Reaches Longest Expansion in U.S. History in Third Quarter of 2019, Beats Market Expectations [The White House] The current economic expansion, which began roughly a decade ago, became the longest in U.S. history on July 1, 2019, beating the previous record that lasted from March 1991 through March 2001. As today’s advance Gross Domestic Product (GDP) release confirms, economic growth continued in the third quarter of 2019, beating market expectations and adding to the expansion’s record length. The release also confirms that the Trump Administration’s policies support sustained economic growth and lead to higher incomes for American families. In its final projection before the 2016 election, the Congressional Budget Office (CBO) estimated that real GDP would grow at a 2.1 percent annual rate in the first 11 quarters of a new Administration. Instead, under President Trump, real GDP as of the third quarter has grown at a strong 2.6 percent annual rate since the election. As of the third quarter, real GDP is $230 billion‐or 1.2 percent‐higher than CBO’s projection (Figure 1). Furthermore, under President Obama’s expansion period, real GDP grew at only a 2.2 percent annual rate compared to the Trump Administration’s 2.6 percent rate. Posted by: lord garth 2019-10-31 |
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