U.S. economy shrinks
As David Leonhardt puts it, "The longest American shopping spree on record is over." The U.S. government released its estimate of the country’s third-quarter GDP growth this morning, and the news is grim, but not terrible: The economy contracted by 0.3 percent over the summer, driven largely by a plunge in consumer spending. The falloff ...
As David Leonhardt puts it, "The longest American shopping spree on record is over." The U.S. government released its estimate of the country's third-quarter GDP growth this morning, and the news is grim, but not terrible: The economy contracted by 0.3 percent over the summer, driven largely by a plunge in consumer spending. The falloff in GDP was slightly lower than expected.
As David Leonhardt puts it, "The longest American shopping spree on record is over." The U.S. government released its estimate of the country’s third-quarter GDP growth this morning, and the news is grim, but not terrible: The economy contracted by 0.3 percent over the summer, driven largely by a plunge in consumer spending. The falloff in GDP was slightly lower than expected.
What can be particularly confusing is that these sorts of indicators tend to lag what is happening at any given point in time. This summer, for instance, consumers were probably cutting back as oil prices skyrocketed to nearly $150 a barrel (good news for ExxonMobil). Now, Americans’ gas bills are getting cheaper, but they’re more worried these days about frozen salaries, layoffs and their access to credit. Out of the frying pan and into the fire?
More from Foreign Policy
Can Russia Get Used to Being China’s Little Brother?
The power dynamic between Beijing and Moscow has switched dramatically.
Xi and Putin Have the Most Consequential Undeclared Alliance in the World
It’s become more important than Washington’s official alliances today.
It’s a New Great Game. Again.
Across Central Asia, Russia’s brand is tainted by Ukraine, China’s got challenges, and Washington senses another opening.
Iraqi Kurdistan’s House of Cards Is Collapsing
The region once seemed a bright spot in the disorder unleashed by U.S. regime change. Today, things look bleak.
Sign up for World Brief
FP’s flagship evening newsletter guiding you through the most important world stories of the day. Delivered weekdays.
By submitting your email, you agree to the Privacy Policy and Terms of Use and to receive email correspondence from us. You may opt out at any time.
