Supassing Expectations: US Economy
November 2017
Source: Simply Hired Blog
The US economy continues to surprise economists and with no signs of slowing down despite the impact of two hurricanes in the Southeast. Exceeding original forecasts, GDP growth in the third quarter of 2017 reached 3% following a GDP growth of 3.1% in the second quarter.
The GDP growth can be attributed to an increase in inventories, exports, and consumer spending during the third quarter. U.S. consumer spending recorded its largest increase in more than eight years, according to the Bureau of Economic Activity there was a 1% increase in September, likely as those affected by hurricanes replaced flood-damaged vehicles.
Along with GDP growth, jobs within the U.S. have also continued on an upward trend. With 261,000 jobs added in October, unemployment fell to an unprecedented rate of 4.1%, the lowest since 2000. This marks the 85th straight month of job growth within the U.S.
The manufacturing sector has seen its 14th straight month of expansion according to the Institute for Supply Management’s report on Business. Of the 18 manufacturing industries, 16 reported overall growth with continued growth in new orders, production and employment.
Amidst a booming economy, the U.S. housing market has also begun to see some noteworthy figures. New single-family home sales had an 18.9% increase in September over the August 2017 rate and a 17% increase over the September 2016 estimate.
The sale of existing home sales finally began to rebound in September with a 0.7% increase after three straight months of declines, but ongoing supply shortages and recent hurricanes have muted the overall activity.
Altogether these indicators point towards continued expansion and a healthy outlook for the U.S. economy going into the 4th quarter and 2018.