The GDP grew 3.4 percent in Q3, the
Personal consumption expenditures were revised down in this third estimate while private inventory investment was revised up.
Economists predict a slight slowdown in 2019, when it’s expected the GDP will grow by a more modest 2.6 percent, a survey by Wolters Kulwer Blue Chip Economic Indicators said. While job growth could slow down, consumer spending and wage growth will continue on a positive trajectory.
“This is still a robust economy,” Barclays economist Jonathan Millar told USA Today.
Nearly half of
“The end is near for the near-decade-long-burst of global economic growth,” John Graham, a finance professor at Duke’s Fuqua School of Business and director of the survey, said. “The
Forces that will push the economy down include fading effects of a federal tax cut, spending increases, steady Federal Reserve interest rate hikes and the Trump administration’s trade fight with
“Next year is going to be all about finding a soft landing zone,” Oxford Economics economist Greg Daco told USA Today.
Economists surveyed by the National Association of Business Economics put the odds of a recession in 2019 at 10 percent. The odds increase to 50 percent by 2021.
There’s also less risk for consumers this time versus the housing bubble crash of a decade ago.
“Household and businesses, borrowers and lenders, savers and spenders … have been more cautious this time,” said Joshua Feinman, chief global economist of DWS.