Newly released data confirmed expectations that the 10-year-old expansion — already the longest ever — will continue growing albeit at a modest pace. The U.S. Bureau of Economic Analysis on Wednesday revised upward third-quarter economic growth and released a new monthly personal income figure showing a strong acceleration after adjusting for inflation.
The four components of U.S. economic growth — consumers, exports net of imports, state and local government spending, and business investment — grew by 2.13% in third quarter of 2019. The government issues three estimates of the quarterly growth rate and the first estimate was for a slowing rate of growth in gross domestic product. The new figure is the first revision before the final figure will be released. The GDP growth rate came in at 2.13% in the third quarter, which ended on September 30th, 2019.
U.S. growth is being driven almost entirely by consumers and low inflation.
After adjusting for inflation, real disposable personal income grew by 2.2% in the 12 months ended in October 2019. That was down from September's 12-month rate of growth of 2.6%, but the highs in real disposable personal income per person relative to the two previous expansions are impressive and important. The amount of money the average working American has in their pocket available to spend has not been higher in modern America. On the Friday after Thanksgiving 2019, the Standard & Poor's 500 index, a grading system for financial economic progress, closed fractionally off an all-time high reached on Wednesday, at 3,140.98. Happy holiday!
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results. |