Economic Growth Accelerates in Q3

Wells Fargo Research Team Wells Fargo

U.S. Review

Economic Growth Accelerates in Q3

Gross domestic product rose 2.9 percent in the third quarter after averaging just 1.1 percent over the first two quarters of the year. Consumer spending, greater business investment and net exports all supported growth for the quarter.
Consumer confidence slipped a bit in October, falling 4.9 points to 98.6. The overall level of the index continues to suggest a modest pace of consumer spending in the fourth quarter.
Durable goods orders data suggested some slight improvement in the fourth quarter for equipment spending after four consecutive quarters of declines.

Global Review

Brexit Has Not Weakened U.K. Economy, Yet

The British economy grew at a stronger-than-expected pace in the third quarter, especially in light of the Brexit referendum in June. That said, there are signs of weakness in investment spending. We still expect the economy to slip into a mild recession in coming quarters, although we acknowledge the upside risks to our forecast.
“Soft” data in the Eurozone have been stronger than expected recently, although it still remains to be seen whether incoming “hard” data will corroborate that story.
Economic activity in Mexico appears to have strengthened in August.

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Wells Fargo Research Team

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