October 27, 2022
Surprise! The economy grew in the third quarter. Putting to rest – for now — fears of a recession. I know you don’t feel that and I’m going to explain why in a second plus – this good report almost guarantees another jumbo interest rate hike next week.
But first the numbers.
The gross domestic product – or GDP report for the third quarter of 2022 was released today.
It showed after declines in quarter one and quarter two of 2022, the GDP popped up 2.6% for quarter three. The gross domestic product is total value of goods produced and services provided in a country during one year.
The gains were mostly because we exported more goods and services than we imported, your state and local “government spending” was strong and the u-s unemployment rate is at a record low.
Now there are some cracks that are beginning to show, this repot found a slowdown of new single family home construction and a slight slowdown of consumer spending. We’ll have to keep an eye on that.
Now – to why you don’t feel this…inflation is at a 40 year high making all those goods and services extremely expensive and mortgage rates are the highest they’ve been in 20 years. All this to say – the Federal Reserve will be meeting and by this time next week it’s is almost certain The Fed will have raised interest rates by another historic three-quarters of a percent.
Read the 3rd Quarter GDP report here.
