Rocky road feared after strong GDP

The third-quarter economy expanded at its fastest pace in four years, growing 4.9%, according to a Department of Commerce report.
NOV 29, 2007
By  Bloomberg
The third-quarter economy expanded at its fastest pace in four years, but the outlook for the fourth quarter is not nearly as rosy. The third-quarter economy expanded at its fastest pace in four years, growing 4.9%, according to a Department of Commerce report. The figure was revised from a previously estimated rate of 3.9%. It was the strongest quarterly increase since the third quarter of 2003 when the GDP grew at a 7.5% pace. The GDP figure is released three times each much, with more complete information added each month. Consumer spending was revised higher, growing at a 2.7% pace, below the previously estimated 3.0% increase. But looking down the line, David Wyss, chief economist at Standard & Poor's, that the consumer will be squeezed due to falling home prices. Mr. Wyss predicts that fourth-quarter GDP will fall to 1.5%, as consumers spend less, inventories flatten out and capital spending eases. Meanwhile, Sam Stovall, chief investment strategist at Standard & Poor's, predicts that the GDP could fall to 0.6% or lower for the first quarter of 2008, due to a struggling housing market, weaker-than-expected spending and elevated oil prices. In another government report, sales of single-family homes increased 1.7% to a total of 728,000 new homes purchased in October, according to a Department of Commerce report. Revised September new-home sales fell 0.1% to an annual rate of 716,000. The government first estimated that said September sales rose by 4.8% to 770,000. The median price of a new home dropped 8.6% to $217,800 in October from the previous month.

Latest News

Veris Wealth Partners and Choreo make C-suite changes
Veris Wealth Partners and Choreo make C-suite changes

Veris revealed a key promotion and its successful CIO transition, while $24.6 billion RIA Choreo taps a veteran leader for a newly created role.

Bluespring, Merit ink new RIA partnerships
Bluespring, Merit ink new RIA partnerships

The two hybrid RIAs have widened their respective footprints with acquisitions in Kentucky and Pennsylvania.

SEC, Binance seek 60-day pause for lawsuit against exchange
SEC, Binance seek 60-day pause for lawsuit against exchange

The joint motion by the regulator and the giant crypto bourse comes as the recently installed crypto task force lays foundations for a formal framework.

Cresset Partners rebrands to Peakline
Cresset Partners rebrands to Peakline

With meaningful scale and growing client needs, the multibillion-dollar RIA's leader says the "time is right" to come into its own an independent private investment business.

Wealth management industry is facing a looming retirement crisis, report warns
Wealth management industry is facing a looming retirement crisis, report warns

Despite technology adding capacity, an advisor shortage is predicted.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.