GDP Grows 2.0% in 3Q

GDP grew 2.0% in the third quarter, beating expectations of 1.8%. This is slightly better than the 1.3% growth rate seen in Q2.

Looking at the various components of GDP -

- Personal consumption grew at a 2.0% rate, up from 1.5% in Q2.

- Government spending grew 3.7%, following eight consecutive quarters of contraction.

- Business investment, what has been a strong area of growth during the recovery, dropped 1.3%.

- However, housing was up 14% for the quarter. Unfortunately, housing is such a small part of the economy now that even a 14% rate of growth did not make a meaningful impact to the total numbers.

All in all, this GDP report illustrates moderate growth in the economy once again. The consumer continues to muddle along, business spending has slowed, and housing is recovering. There is no new news in that.

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The real U.S.GDP growth rate was lifted by government for the first time since 2010.