BEA: US Q3 GDP Up 4.3% on Year vs Wall St. 3.3% Forecast


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The U.S. economy expanded at a 4.3% annualized rate in 
the third quarter, faster than the 3.3% rate forecast by Wall Street, according 
to data from the Bureau of Economic Analysis (BEA) on Tuesday (12/23) that 
showed resilient consumer and business spending despite concerns about the 
impact on inflation from high tariffs.

   This surge in gross domestic product significantly outpaced most economist 
estimates, underscoring growth momentum despite a record-long federal 
government shutdown throughout October and the first half of November.

   Corporate profits and record investments in artificial intelligence data 
centers contributed to the expansion, the BEA data showed, although inventory 
fluctuations and a decline in residential investment weighed on the final 
analysis.

   Policymakers at the Federal Reserve are balancing economic performance 
against a softening labor market and higher living costs brought on by varying 
tariffs of between 10% and 100% levied by the Trump administration on imports 
from most countries.

   The U.S. Consumer Price Index for November grew at an annualized rate of 
2.7% in November, lower than the 3.1% forecast by Wall Street, but higher than 
the Fed's long-term 2% target. The central bank's chairman Jerome Powell 
signaled on December 10, after the third straight U.S. rate cut of 50 basis 
points for this year, that there may just be one round of easing in 2026 due to 
inflationary concerns.

   Yield on the 10-year U.S. Treasury note, a proxy for hawkish monetary 
policy, rose for a third straight day after the release of the third-quarter 
GDP numbers. Wall Street's S&P 500 rose by 0.2%. The February delivery contract 
for WTI on NYMEX showed a 0.2% increase amid volatile trading.

    




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