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GDP Grew More Than Predicted in the Third Quarter

<p class&equals;"MsoNormal" style&equals;"text-align&colon; left&semi;" align&equals;"center">The U&period;S&period; Economy has hit an impressive milestone&period; In the third quarter&comma; the gross domestic product &lpar;GDP&rpar; grew by 3&period;3&percnt;&comma; even with the tough hurricane season&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">This is the fastest rate seen in the last three years&period; In 2016&comma; the economy saw merely 1&period;5&percnt; growth&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;It was the first time actual gross domestic product had exceeded potential GDP since the fourth quarter of 2007&comma; suggesting the nation&rsquo&semi;s economic resources are being used efficiently&period; An acceleration in growth at this point could generate overheating that produces financial excess or long-elusive consumer price pressures&comma; writes the <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Wall Street Journal&period; <&sol;em><&sol;p>&NewLine;<p class&equals;"MsoNormal">The economy started to slow back during the recession that started to hit December of 2007&period; In mid-2009&comma; the GDP was 6&percnt; below the maximum sustainable level&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">This is another accomplishment of the Trump administration&comma; which also recently announced that the unemployment rate is at the lowest level it has been in the last 17 years&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;While the revised growth rate is in line with President Donald Trump&rsquo&semi;s goal&comma; economists generally see such a pace as unsustainable and expect growth to slow sometime in 2018&period; Trump and congressional Republicans are pushing a tax-cut plan with the aim of lifting GDP gains to&nbsp&semi;3&nbsp&semi;percent&nbsp&semi;annually&comma; though analysts expect any economic boost to be modest&comma; on balance&comma; if the proposal becomes law&comma;&rdquo&semi; writes <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Bloomberg Markets&period;<&sol;em><&sol;p>&NewLine;<p class&equals;"MsoNormal">The GDP growth was anticipated to be around 3&period;2&percnt;&comma; but again the economy is performing better than expected&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&rdquo&semi;It&rsquo&semi;s the sweet spot&comma;&rdquo&semi; said Beth Ann Bovino&comma; chief U&period;S&period; economist at S&amp&semi;P Global Ratings&period; &ldquo&semi;We&rsquo&semi;d like to be there for some time&comma; but let&rsquo&semi;s see how long it lasts&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">So what attributed to the growth&quest;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Interestingly enough&comma; consumer spending&comma; which accounts for 70&percnt; of U&period;S&period; economic output&comma; decreased by 1&percnt; from the second quarter and grew at a pace of 2&period;3&percnt;&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">However&comma; business investments increase by 7&period;3&percnt; from July to September&period; But businesses accumulated also more inventory than expected&comma; so this could halt some growth in the fourth quarter&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Government spending and investments also increased&comma; due to the spike in defense spending&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">There are some areas in need of improvement though&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Price data in the GDP report showed inflation remains behind the&nbsp&semi;Fed&rsquo&semi;s 2 percent goal&period; Excluding food and energy&comma; the central bank&rsquo&semi;s preferred price index tied to personal spending rose at a 1&period;4 percent annualized rate last quarter&comma; revised from 1&period;3 percent and following a second-quarter gain of 0&period;9 percent&comma;&rdquo&semi; writes <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Bloomberg Market&period;<&sol;em>&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">But the fed chair Janet Yellen expects the economy to only improve&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">On Wednesday&comma; Yellen said &&num;8220&semi;the economic expansion is increasingly broad-based across sectors&comma;&&num;8221&semi; and that &&num;8220&semi;the economy will continue to expand&rdquo&semi; while addressing lawmakers&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Forecasters at Macroeconomic Advisers are predicting 2&period;5&percnt; GDP growth for the next quarter&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal"><strong>Author&rsquo&semi;s note&colon;<&sol;strong> This is what we hoped for when Trump was elected&period; There might be a minor downturn soon&comma; but with Trump&rsquo&semi;s tax plans&comma; it&rsquo&semi;s likely the growth will only continue&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal"><strong>Editor&&num;8217&semi;s note<&sol;strong>&colon; This will be the first year since before Obama to be greater than 3&percnt; for the whole year&period;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;

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