US Third Quarter Final GDP Value Revised Up to 3.2% and Fed Hawks Expected to Overheat | Anue tycoon-US stocks

The US Department of Commerce released data on Thursday (22) showing US real gross domestic product (GDP) grew at a trailing quarterly rate of 3.2% in the third quarter, compared with previously revised values and initial 2.9%. and 2.6%, respectively. Previously, US GDP fell for two consecutive quarters and the economy fell into technical contraction. However, in the third quarter, the economy recorded positive growth led by exports and consumption, but it also meant an increase in inflation risks.

The Commerce Department said that third-quarter GDP growth primarily reflects growth in exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending, which were partially offset by declines in residential fixed investment and private inventory investment.

Specifically, industrial supplies, raw materials (particularly non-durable goods) and tourism contributed the most to export growth, while consumer spending growth was mainly driven by health care and fixed investment growth nonresidential was driven by equipment and intellectual property products Driven by increased state and local government spending, primarily due to higher structural investment and employee wages, the federal government’s spending increase was driven by spending on the defence.

In terms of industries, the service sector GDP grew by 4.9%, government grew by 0.6%, and commodity manufacturing industry decreased by 1.3%. Overall, 16 of the 22 industries contributed to real GDP growth in the third quarter. Additionally, interest-sensitive real estate investments are declining at an annual rate of 27.1% as the Federal Reserve (Fed) has raised interest rates seven times this year.

While US GDP grew sharply in the third quarter, this also resulted in higher inflation. In the third quarter, the Personal Consumption Expenditure (PCE) Price Index increased at a final quarterly rate of 4.7%, higher than the revised value of 4.6% and the initial value of 4.5%.The market expects the Federal Reserve (Fed ) to raise interest rates.

The preliminary value of the US fourth quarter GDP will be announced in January next year, and the market expects the US economy to achieve positive growth again in the fourth quarter, but the growth rate will slow down to 1%.

In addition, many economists believe that the US economy will fall into a recession next year under pressure from the Fed raising interest rates to fight inflation. The Bank of America expects GDP to fall by 0.4% in the first quarter of next year.

At the same time, the Fed is more pessimistic about the US economy next year: In the economic forecast released this month, the Fed slightly increased the US real GDP growth rate this year from 0.2% in September to 0.5%. revised down by 0.7 percentage point to 0.5%.