Overview
- Consumer spending accelerated to a 3.5% annual rate, led by services, while overall investment declined as inventories and housing pulled back.
- Trade boosted the quarter as exports rose about 8.8% and imports fell 4.7%, which mechanically raised measured GDP.
- PCE inflation quickened to roughly 2.8%, with core at about 2.9%, keeping both measures above the Federal Reserve’s 2% goal.
- Labor indicators weakened around the same period, with slower hiring and the unemployment rate up to roughly 4.6% in November.
- The 43-day shutdown delayed the data and is projected by the CBO to trim Q4 growth by about 1–2 percentage points, with the next GDP update due January 22.