Trump Economy Driving Robust GDP to 3.5% in Q-3
$DIA, $SPY, $QQQ, $RUTX, $VXX
The US economy grew at a robust annual rate of 3.5% in the July-September Quarter as the strongest rise i consumer spending in nearly 4 years helped offset a sharp drag from trade.
The Commerce Department said Friday that Q-3 GDP, the country’s total output of goods and services, followed an even stronger 4.2% rate of growth in Q-2. The 2 Quarters marked the strongest consecutive Quarters of growth since Y 2014.
The result was higher than most economists had been projecting.
President Donald Trump cited it as evidence his economic policies are working. But some private economists worry that the recent stock market declines could be a warning signal of a coming slowdown.
Tune out that Noise, and do not confuse the economy with the financial markets activities.
The GDP report along with next week’s unemployment report for October are the last major looks at the economy before voters go to the polls in the mid-term elections.
For this year, economists are projecting the momentum built up should result in growth of 3%, the best annual showing in 13 years.
President Trump has ratcheted up his attacks on the Fed for raising interest rates, contending that the higher rates by slowing the economy will work against his efforts to speed up growth through the $1.5-T tax cut package he got Congress to pass last year.
“Every time we do something great, he raises interest rates,” President Trump said in an interview this week with the WS-J in which he again said he viewed the Fed as the “biggest risk” facing the economy “because I think interest rates are being raised too quickly.”
The Fed has raised rates 3X this year and signaled it will raise rates 1 more time this year and expect to raise rates 3X in Y 2019. Those moves are being made to ensure that tight labor markets, with unemployment at a 49-year low of 3.7 percent, and strong growth don’t trigger unwanted inflation.
The GDP report Friday was the government’s 1st of 3 reviews of overall economic activity for the July-September frame.
Friday, the major US stock market indexes finished at: Dow -296.24 at 24688.31, Nasdaq -151.12 at 7167.40, S&P-46.88 at 2658.83
Volume: Trade on the NYSE came in at 1.1-B/shares exchanged
- NAS Comp +3.8% YTD
- DJIA-0.1% YTD
- S&P 500 -0.6% YTD
- Russell 2000 -3.4% YTD
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 26 October 2018
Have a terrific weekend.
Latest posts by Paul Ebeling (see all)
- Ferrari (NYSE:RACE) Will Continue to Limit Supercar Production - August 18, 2019
- Merkel Boasts, “We are Prepared for a No-deal BREXIT” - August 18, 2019
- White House:”No Recession in Sight” despite Pundits Noise - August 18, 2019