Dow sinks after the US economy grew much faster than previously thought in the third quarter

[Scott]

 

New York CNN  — 

The Dow sank as America’s economy grew much faster than previously thought in the third quarter, a sign that the Federal Reserve’s battle to cool the economy to fight inflation is having only a limited impact.

The Commerce Department’s final reading Thursday morning showed gross domestic product, the broadest measure of the US economy, grew at an annual pace of 3.2% between July and September. That was above the 2.9% estimate from a month ago. Economists surveyed by Refinitiv had expected GDP to stay unchanged from its previous reading.

https://edition.cnn.com/2022/12/22/economy/gdp-third-quarter-final/index.html

[ozimoron]

Jobs are going well but people aren't spending because of inflation. A recession is inevitable I believe. Consumer confidence is key and that's missing.

Edited December 23, 2022 by ozimoron

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Inflation is easing. In fact, probably more quickly than US statistics show because rent and mortgages make up about 40 percent of the total. But that's a lagging indicator since rental contracts usually last a year or more. Data from private companies like Zillow show rents declining and prices for houses as well.

Actually, consumer confidence went up last month. Probably because of the sharp decline in gasoline prices. Consumers tend to overweight the importance of that number because it's something they encounter often.

[Tug]

It’s truly a testament to the strength of our economy and the American experiment (our system)thankfully we have a TEAM in power who are carefully trying to manage it even if it’s a bit painful at times