While some on Wall Street are worried about a recession, recent economic data show that GDP growth is actually speeding up faster than earlier numbers indicated.
On Thursday, second-quarter growth was revised even higher, to 3.8% from a prior reading of 3.3%, on robust consumer spending. That’s after a first-quarter dip that was driven by President Donald Trump’s trade war.
Meanwhile, third-quarter growth is shaping up to be hotter. Durable goods orders for August jumped more than expected, according to data released on Thursday. And the personal income and spending report on Friday showed consumption remained healthy in August while also topping forecasts.
Given that consumer spending represents over two-thirds of the U.S. economy, the gains more than offset weakness in housing, which remains buffeted by high home prices and mortgage rates.
The Atlanta Fed’s GDP tracker now puts third-quarter growth at 3.9%, up from an earlier estimate of 3.3%, citing the consumption data and a narrower trade deficit in August.
