Latest GDP Numbers Aren’t Calming Recession Fears
Economic growth ticked up ever so slightly last quarter, but not by enough to console those worried about a looming recession.
Inflation-adjusted gross domestic product (GDP) grew 0.6 percent during the third quarter of 2022, for an annualized growth rate of 2.6 percent, according to new numbers released by the U.S. Commerce Department’s Bureau of Economic Analysis (BEA).
These numbers come after two quarters of shrinking GDP. The top-line growth rate was clouded by declining consumer spending on goods, falling investment in new single-family housing construction, and a declining savings rate.
Inflation and rising interest rates continue to act as headwinds on the economy. That all has made analysts pretty glum about the new numbers.
“Ignore the headline number—growth rates are slowing,” said Michael Gapen, chief U.S. economist for Bank of America, to The New York Times. “It wouldn’t take much further slowing from here to tip the economy into a recession.”
“If you take a step back and look at GDP, it’s gone effectively nowhere over the last year,” seconded Mark Zandi, chief economist at Moody’s Analytics, in comments to NPR. “One quarter or two it’s down a bit.
Article from Reason.com