GDP report: U.S. economy grew at 2.6% annual rate in third quarter
The Port of Oakland earlier this summer. Photo: David Paul Morris/Bloomberg via Getty Images
The U.S. economy expanded at a 2.6% annual rate in the third quarter , ending the streak of back -to- back contractions that raised fears the country had entered a recession.Why it matters: Gross domestic product got a boost from trade dynamics, but the underlying details — including weaker housing and decelerating consumer spending — point to an economy that’s slowing.
• The first estimate of GDP , released by the Commerce Department on Thursday, will be revised in the coming months as the government gets more complete data.
• The report comes on the heels of negative GDP growth during the first half of the year. In the January through March period, the economy contracted at a 1.6% annual rate. In the second quarter, the economy shrank at a 0.6% annualized pace.Between the lines: The latest GDP report is among the final major economic data releases before the midterm elections, where voters have ranked the economy as a critical issue.
• The labor market is solid, with the unemployment rate at the lowest level in over 50 years. But soaring inflation has eaten away at Americans’ wage gains.The back drop: The Federal Reserve is trying to engineer an economic slowdown in a bid to crush high inflation . It has swiftly raised borrowing costs five times this year, with another big increase likely ahead at its upcoming policy meeting next week.
Editor’s note: This is a developing story. Please check back for updates.
The U.S. economy expanded at a 2.6% annual rate in the third quarter, ending the streak of back-to-back contractions that raised fears the country had entered a recession. Gross domestic product got a boost from trade dynamics, but the underlying details — including weaker housing and decelerating consumer spending — point to an economy that’s slowing.
• The first estimate of GDP, released by the Commerce Department on Thursday, will be revised in the coming months as the government gets more complete data.
• The report comes on the heels of negative GDP growth during the first half of the year.
The backdrop: The Federal Reserve is trying to engineer an economic slowdown in a bid to crush high inflation.
