GDP Gains

At 3.5%, 18Q3 GDP growth was strong, but noticeably down from 4.2% growth in 18Q2. Household consumption grew a healthy 4%. Government spending rose a vigorous 3.3% and inventories rose by 2.1%, but both gains are transitory and thus short lived. Net exports fell 1.8%; investment in structures (residential and non-residential) fell 0.3%. 18Q4 GDP growth will come in at a solid but weaker 3.1% as the economy continues cooling.