Transcript for GDP Jump Surprises Analysts
Okay. It's Thursday October 30 the market to new Yorker open in our big number this morning 3.5. Percent. A solid number plane well for the US economy and that. The economy grew at a solid annual rate in the July through September quarter. That is more than economists had been predicting good news hello everyone I'm Michelle Franzen in New York where about. We're talking about the nation's gross domestic product this morning. And here with all the details on that Washington does business reporter Daniel Douglas gave real good morning Danielle good morning. So the strongest six months for the GDP in more than a decade what are the biggest factors behind the strong growth. There's been a solid clip of government spending and a shrinking deficit that. Nicely offsetting a bit of a slowdown in consumer spending in the last quarter. It's it's interesting because this is one of the few times that we've seen consistent consecutive growth. That certainly bodes well for the economy and supports the Federal Reserve's decision. To retreat from its bond buying program ahead upheld the economy for so long. So what it but what about what's happening in the world military wise as things heat up in the Middle East is that also contributing to this back here at home. Certainly we're seeing a a faster pace of military spending which is contributing to. To some of the GDP growth that we saw and then we're also seeing a pick up. In oil production as well as on in manufacturing. We're seeing a bit more activity is far as. Exports. Out of the US into other countries and that's also helping to bolster the economy in the last couple of months. Yeah you mentioned that oil production oil prices. Driving down to lower lower some of the lowest prices we've seen in a long time. Is that also giving consumers a little bit more spending money. It is and I think we're gonna really see it in the holiday season now the consumers has been a little bit less on gas prices which tend to be. Contain anti about a high percentage of a of consumer spending. On average we will probably see them feel more free to spend more money on holiday purchases as well as general last minute. Deals within the rest of the year so that bodes really well for the the end of the year and perhaps also into the beginning of the year. So Danielle since we're looking ahead at the holiday spending give us an idea where there any hints on the consumer spending and how they might. Beef feeling in this last quarter. -- present appliances did really well in the last quarter whirlpool. Treated really well as well as a couple of other major manufacturers. Sold me this is a fact that consumers are feeling better about their economic position they're ready to replace some of those. Older appliances in their homes in the certain to see that they can afford those big ticket items and if we continue to see that level of spending and particularly on those kinds of large at a ticket purchases. Adding that old really well for the at least the last few months of the year and hopefully within the beginning of the next year. All right Daniel Douglas Gabriel thank you very much for joining us think you. You've cores can keep up with the latest headlines right here on abcnews.com. You've been watching the big number. I'm Michelle Franzen in New York. It.
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