US GDP Growth Surges Despite Challengesđ
US GDP blew past all street estimates and grew at 4.9% in Q3, doubling the pace in the prevoius quarter and the fastest levels since 2021. A near regional-banking collapse, ongoing geopolitical conflicts, sky high mortgage rates and stubborn inflation were not able to slow the American consumer. Personal consumption jumped 4%, goods spending scorched at 4.8%, services spending rose 3.6%, final sales grew 3.5%, residential investment bounced 3.9%, and government and federal spending rose 4.6% and 6.2%, respectively. Inventory rebuilds added $66bln to GDP in the 3rd quarter, and core PCE slowed to a comfortable 2.4% vs 3.7% last quarter. An unequivocally strong report across the board.
The other data release collaborated with the strong data theme, with durable goods bouncing 4.7% verus -0.1% in August, pending home sales rebounding 1.1% versus -7.1% last month, and initial claims holding steady at just +10k (to 210k) for the week ending October 21.
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