Wednesday, October 30, 2024

US economy kept clicking along in Q3. Why screw this up?

We got another update on how the economy was doing ahead of next week’s election. This shouldn't surprise you if you've paid any attention at all or touched grass in recent weeks, but things are going really well in America.

Oh? Let’s look into the report and get more on that.
The increase in real GDP primarily reflected increases in consumer spending, exports, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The increase in consumer spending reflected increases in both goods and services. Within goods, the leading contributors were other nondurable goods (led by prescription drugs) and motor vehicles and parts. Within services, the leading contributors were health care (led by outpatient services) as well as food services and accommodations. The increase in exports primarily reflected an increase in goods (led by capital goods, excluding automotive). The increase in federal government spending was led by defense spending. The increase in imports primarily reflected an increase in goods (led by capital goods, excluding automotive).
Personal consumption accounted for 2.46% of the increase in GDP, the most that it added to the economy since Q1 2023, and second most since Q4 2021.

See those increases in exports and imports over the last year? Think "Tariff Man" is going to keep that trend going?

If you take out government spending and inventories, the underlying GDP grew by more than 2.1%, which is the fastest growth by that metric for 2024, and the second-fastest growth in 18 months.

Incomes also kept rising in Q3 for Americans.
Current-dollar personal income increased $221.3 billion in the third quarter, compared with an increase of $315.7 billion in the second quarter. The increase primarily reflected an increase in compensation. Disposable personal income increased $166.0 billion, or 3.1 percent, in the third quarter, compared with an increase of $260.4 billion, or 5.0 percent, in the second quarter. Real disposable personal income increased 1.6 percent, compared with an increase of 2.4 percent.
And inflation? Well under control.
The price index for gross domestic purchases increased 1.8 percent in the third quarter, compared with an increase of 2.4 percent in the second quarter (table 4). The personal consumption expenditures (PCE) price index increased 1.5 percent, compared with an increase of 2.5 percent. Excluding food and energy prices, the PCE price index increased 2.2 percent, compared with an increase of 2.8 percent.
Given that the Federal Reserve keeps telling us that the PCE index is what they look at the most on the inflation front, that 1.5% reading should allow the Feds to keep cutting rates next week and in the near future.

Look, I know that TrumpWorld is trying to portray an alternate reality where the US economy is depressed and wracked with inflation. But in the Real America, it’s clear that things continue to thrive under Biden-Harris, with inflation continuing to stay under control, and individuals making more money and being fine with spending it.

And yet the (allegedly) richest man on Earth is telling us that this shouldn’t continue, and that everyday Americans should cut back?

I’ve got a better idea, Elmo. Let’s try to keep the good times rolling for Real Americans that work jobs and pay bills, and any economic or taxing pain that needs to be inflicted will fall on billionaires like you to bring our budget further into balance. Maybe this would encourage you and your fellow oligarchs to invest in products and employees instead of throwing your tax cut windfalls at equally corrupt politicians.

Don’t screw this up, America. We got a good thing going with Dem economic policies today.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)