Overview
- A preliminary BEA estimate put annualized GDP growth at 4.3% for Q3, roughly 1.1% quarter over quarter and well above forecasts near 3.2%.
- The report cited faster consumer spending, plus increases in government purchases and exports, while overall investment slipped slightly.
- Price pressures picked up on the PCE gauge and real incomes did not rise, as the Conference Board reported further deterioration in consumer morale.
- Markets cooled on the release, and CFRA’s Sam Stovall said the stronger print gives the Federal Reserve more reason to keep policy rates unchanged.
- President Trump celebrated the outcome, attributed the strength to tariffs, and insisted there is no inflation.