U.S. economy is reaching a crossroads
The latest revision of third quarter GDP finds the U.S. economy growing even faster than we’d thought this summer — 3.1 percent.
The good news, according to Diane Swonk, chief economist as Mesirow Financial, is that consumers spent more than initially estimated last month, and there was more housing activity.
There is a downside as well, she adds.
“Investment — that backbone of our future growth — actually declined,” explains Swonk. That means the underlying growth pattern going into the fourth quarter is fairly weak.
“We’re at a fork in the road,” she adds. “We could be going on a much stronger path, but that all depends on fiscal policy and the fiscal debate that’s playing out right now in Washington.”
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
