U.S. GDP accelerated at 2.6% pace in Q3, better than expected as growth turns positive

Without housing slow-down, this would have been a pretty good quarter, but the Fed had to do something about inflation, and it has a direct impact on housing market

U.S. GDP accelerated at 2.6% pace in Q3, better than expected as growth turns positive
https://www.cnbc.com/2022/10/27/us-...r-than-expected-as-growth-turns-positive.html

• Gross domestic product rose 2.6% in the third quarter versus the estimate of 2.3%.
• A narrowing trade deficit and increases in consumer spending and government outlays boosted the number.
• A sharp pullback in housing subtracted from the number, part of a broader decline in private investment.
• Consumer spending decelerated, increasing at just a 1.4% pace in the quarter, down from 2% in Q2.

 

This is the first time I remember when good economic news was bad for the stock market. Every time there is good news from the labor market, or from corporate earnings, or housing, the stock take a hit because they know good news means the Fed will hike rates again to cool things down. Bad news, in the other hand, encourages investors because then they bet the Fed wont hike rates as much.

 

That's actually bad news. A good economy is exactly what the Federal Reserve seeks to destroy because it will lead to further inflation and the risk of hyperinflation. This is a case where the good numbers are actually bad. Because it means we're losing the battle with inflation.

 

Could well be a minor blip leading into 2023. The economy is not as strong as Biden and the Dems you have you believe

62.2%: Labor Force Participation Declines for 3rd Straight Month

...In October, the unemployment rate increased two-tenths of a point to 3.7 percent; and the labor force participation rate declined a tenth of a point to 62.2 percent.

The number of employed Americans -- 158,608,000 in October -- dropped by 328,000 from September's all-time high of 158,936,000. At the same time, the number of unemployed Americans increased by 306,000 to 6,059,000, and the combination of that unemployed up/employed down produced the higher unemployment rate.

The nonfarm economy added 261,000 jobs last month, well above the consensus estimate of 200,000. Notable job gains occurred in health care, professional and technical services, and manufacturing.

BLS notes that Hurricane Ian "had no discernible effect on the national employment and unemployment data for October."

In October, the civilian non-institutional population in the United States was 264,535,000. That included all people 16 and older who did not live in an institution, such as a prison, nursing home or long-term care facility.

Of that civilian non-institutional population, 164,667,000 were participating in the labor force, meaning they were either employed or unemployed -- they either had a job or were actively seeking one during the last month. This resulted in a labor force participation rate of 62.2 percent in October, down from 62.3 percent in September and 62.4 percent in August, so the trend is negative....

https://www.cnsnews.com/article/was...rce-participation-declines-3rd-straight-month

Companies especially high tech are starting to announce layoffs in anticipation for a slowing economy going into 2023 and the Biden is given us NOTHING to try and mitigate it and in fact his policies and proposals continue to drive it.

 

Hummm…

Increased employment is inflationary, sad to say, and may be a trigger for another interest rate boost.
They are saying “mild recession”, but they really don’t know.
But so far stagflation is in the word games yet.
The problem is the long term damage to the lower middle class and below. No one wants to talk about that…

 

Corporate welfare spending also counts toward GDP, so dishonest posters will try and claim that indicates a 'booming economy'. It doesn't, it's just bigger welfare spending.

'Employment' is always high when labor is dirt cheap and wage significantly lower than what they would be adjusted for real inflation. Red China also has 'high employment' levels. They also have barbed wire topped walls around their factories to keep 'employees' from escaping.

 

The stock market went up under COVID lockdown.....that's insane and is unrealistic and exposes a rigged game and the inherent (read as the fix is in due to government bailout dependency) divergence of today's market and the average economy. Now it's a casino divested from street economics.

 

The numbers come from the same place no matter who is in power, so they are no "Biden and Dem" numbers as you seem to think.

Do you realize that while you tried to downplay the numbers, you accidentally admitted the number of employed Americans was at an all-time high in September?

 

It dove 30% initially, and then begun to recover.

 

And that's because they were "demanding" a bailout. The game is rigged...house of cards.

 

Where did I say otherwise about where the numbers come from? Where is the LFPR? The shear number should he higher just because of population growth. And no it has not recovered to pre-covid levels 158,772,000 vs 158,608,000.