U.S. gross domestic product (GDP) growth sharply decelerated to an 2% annualized rate in the third quarter, down from a 6.7% rate in the April-June quarter, the U.S. Commerce Department said Thursday. Economists had forecast GDP to slow to a 2.8% rate. Consumer spending slowed.
Disposable income fell by 0.7%, or $29.4 billion. The savings rate also declined to 8.9% vs. 10.5% in the second quarter.
Consumer spending rose a scant 1.6% in the third quarter, well below the 12% rate in the prior three months.
Households shifted spending to services, which rose 7.9% while spending on durable goods plunged 9.2% in the third quarter… Business investment rose 1.8% in the third quarter, down sharply from a 9.2% rise in the prior period. Without gains in intellectual property, business investment would have been negative.
Final sales to domestic purchasers, a measure of domestic demand, rose 1% after an 8% gain in the second quarter… The widening in the trade deficit subtracted 1.4 percentage points from growth.
MacDailyNews Take: Obviously, a healthy U.S. economy and consumer confidence is essential to Apple, as America is Apple’s largest market, by far.
As we wrote back in May, “‘Tis best to get a handle on inflation, if you know how, while you still can.”
Inflation is repudiation. — Calvin Coolidge
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
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I don’t understand how a swamp denizen of 47 years, now president with all that accumulated experience, does NOT make the economy ROAR like President Trump. Brainless, clueless, media darling is a guess…
Let’s go Brandon!
for entrainment purposes only
It will be interesting to see whether a full year of data allows for a more robust analysis of how the economy is going. When the stats are jumping around so much post-pandemic most models are struggling to fit the monthly and quarterly updates into a predictable pattern that allows for more accurate forecasting.
if anything they are fudging the numbers to look better than they are; the true condition of the economy is most likely worse than we are being told. The trend is getting worse as the time goes. … Have you been shopping lately? Inflation is real. The solution is not to pump trillions more into a hot economy. More money chasing few products and services will create more inflation.
Idiots on this board are all brainwashed DOPES! Can’t wait until shit hits the fan and they all wine to mommy.
…as you whine and ding, no doubt.
Don’t look at me, I voted for Trump!
great plan, lets raise corporate tax rates 15% points higher than businesses in CCP china. Dose Biden know or care that the capital gains tax rate in Hong Kong is 0%-8% while even mainland China Capital gains tax is 20%… so Biden’s plan is to raise the capital gains on the “wealthy” to 38-45% and expect them to continue invest and save money in the USA; Smart money will flee dumb tax laws. Biden’s tax plan will actually lower the amount of money the IRS takes in and it will force investments and wealth off shore.