Growth in the United States economy got a bit of a boost this week to bolster the third quarter, instead of slowing down as economists had initially reported. Furthermore, this accelerates appears to, perhaps, contribute to an overall improvement in business investments across the board.
The modest shoring up of growth was reported on Wednesday, just as America heads into the extended weekend. The US government released new data that showed far fewer Americans filed for unemployment benefits last week than in previous weeks; this brings to an end two straight weeks of five-month highs.
Perhaps more importantly, the strength of the labor market will continue as consumer spending begins to slow.
In all, then, these reports—and others—give us a bigger picture about the overall perspective of the American economy, which has now been expanding for a record 11 years. And this picture depicts America’s resilience to overcome the many obstacles laid in front of the country’s path financial strength from Donald Trump’s trade war with China and the trail of last year’s massive Republican tax cut.
All this in mind, economists have now boosted their estimates for economic growth in third quarter as we go into the final month of the year. This upswing of data appears to validate the improving sentiment by Federal Reserve Chair Jerome Powell. Earlier this week, Powell said, “at this point in the long expansion, I see the glass as much more than half full.”
And in that vein, last month the US central bank cut interest rates for the third time this year. This signaled a pause in the ongoing easing cycle, which started in July, when the Fed lowered borrowing costs for the first time in more than a decade. Midweek, the Fed said the economy is growing “modestly from October through mid-November.”