Slow Growth for the Foreseeable Future
– This week’s third quarter GDP release pointed toward an ongoing moderate pace of economic growth. Growth for the quarter was supported by consumer spending, much slower business spending, residential construction activity, and government spending. Net exports and inventories detracted from growth.
– Durable goods orders bounced back in September; however, the details of the report were less encouraging with weakness in several key areas. The pullback in orders suggests that growth will likely be weaker through the end of the year.