Q3 GDP Results: Personal Spending and Economic Trends | Episode 063 | 10-26-23
Megan Horneman, Chief Investment Officer at Verdence Capital Advisors, discusses the recently released third-quarter GDP report. The GDP growth came in at an impressive 4.9%, exceeding expectations of 4%. The growth is primarily attributed to a significant increase in personal spending, which hasn’t been seen to this extent since the fourth quarter of 2021. Megan highlights the inflation component of the report, showing a notable deceleration from the previous quarter. However, she expresses concerns about service inflation, particularly noticeable for those renewing homeowners’ insurance. Looking ahead, Megan is cautious about the sustainability of consumer spending, considering various economic challenges, such as rising interest rates, student loan repayments, high credit card debt, elevated gasoline prices, and geopolitical uncertainties. She discusses the Fed’s role in managing the economy and controlling inflation as we move toward the next economic expansion.
