U.S. GDP Up 4.9% in 3Q, Fastest Growth in Past Two Years 

The U.S. Department of Commerce reported that U.S. GDP grew by 4.9% in the third quarter, exceeding the 2.1% growth in the second quarter and economists’ expectations. Strong consumer spending contributed to the growth drive.  

Consumer Spending Takes Center Stage

Consumer spending experienced a significant increase of 4%, marking the highest growth rate since the fourth quarter of 2021. The uptick surpassed the modest 0.8% increase seen in the second quarter of 2023.  

(U.S. GDP，U.S. Department of Commerce)

U.S. Durable Goods Orders lifted 4.7% MoM in September, Exceeding Expectations 

After contracting by 0.1% in August, new orders for manufactured durable goods in the US increased by 4.7% month over month in September 2023, well above the 1.7% increase that the market had anticipated.  

Transportation Equipment Leads the Charge

The standout feature in the durable goods orders report is the resurgence of demand for transportation equipment. Orders for transportation equipment witnessed a remarkable increase of 12.7% in September, a stark contrast to the 1.1% decrease observed in August. This upswing is largely attributed to the heightened demand for civilian aircraft.

(U.S. Durable Goods Orders, U.S. Census Bureau)

Conclusion

In summary, the most recent U.S. GDP and Durable Goods reports for the third quarter of 2023 have portrayed a bright and hopeful image of the nation’s economic well-being. Powered by vigorous consumer spending propelling GDP growth and an enduring demand for durable goods, the future appears promising.

These impressive outcomes underscore that the U.S. economy is following a robust trajectory, laying the groundwork for potential prosperity in the upcoming months.

As we persist in vigilantly tracking economic developments, it becomes imperative to remain well-informed and adaptable in the face of this ever-evolving landscape.

This approach equips us to make sound, well-considered choices and seize opportunities within the dynamic economic environment we navigate.