I thought the GDP report would make the economy looks stronger than it really is and it did. GDP grew 4.9% in the third quarter according to the Bureau of Economic Analysis’s first estimate. The increase was led by an increase of 4.0% in consumer spending that contributed 2.69% of the total. As discussed in the October 23 Weekly Technical Review an increase in inventories was expected to inflate GDP. “ In the second quarter of 2023 the Change in Inventories only subtracted -0.09% from GDP. When Q3 GDP is reported, Inventories may add to GDP since Wholesale Inventories were up 1.3% in July...
