Amidst the increasing global uncertainty and the fear of worldwide deflation, the US third quarter GDP grew at a seasonally adjusted annual rate of 3.9%, .4% higher than was previously estimated (for a quick GenFKD rundown on GDP, click here). According to The Wall Street Journal, “the combined growth rate in the second and third quarters was 4.25%, affirming a six-month growth pace that is the best since 2003.” I’d chalk this up to yet another reason to celebrate this weekend. #getdrunkforGDP
Economists are attributing the pleasantly surprising turn of events to stronger consumer and business spending than previously expected and a difference in inventory investment, which is a component of GDP that measures the difference between goods produced and goods sold in a given year.
Generally, things seem to be heading in the right direction. However, economists believe we need to wait until we’re on solid economic footing before The Fed should even think about raising the interest rates (a decision that would halt inflation, therefore slowing down our economy).
Read more on the 2014 third quarter GDP here.