Weak Third Quarter, but Better Days Ahead
- Economic activity lost some of its momentum in the third quarter. Real GDP growth rose at a 1.5 percent-annual pace, but much of the drag was due to a slowdown in inventory building. Real private sales to domestic purchasers, which is a better gauge of final demand, strengthened more in line with trend growth. We expect real GDP growth to pick up in the fourth quarter, coming in closer to real final sales. ยท
- New home sales and durable goods were also weak during the month. New home sales seem to be out of step with other housing indicators that are improving and the worst of the slowdown in the factory sector may be behind us.
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Tags: economy, finance