Sorry, but the economy’s growth spurt isn’t going to last

Sorry, but the economy’s growth spurt isn’t going to last

During the third quarter, the U.S. economy grew at its fastest pace in two years. However, this rate of growth is unlikely to continue. Jeff Cox, a CNBC contributor, believes this spike in GDP growth is due to one U.S. export:┬ásoybeans. According to Cox, there was an “export bonanza” because of increased demand from China that will not increase GDP growth in the long run. Other economic indicators such as consumer spending, residential spending and equipment purchases all tumbled in the third quarter. This led Paul Ashworth, Chief U.S. Economist at Capital Economics, to believe this was actually a “disappointing” GDP report.

 

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