GDP Growth in Third Quarter Will Be Revised Upwards to 3.4%, Says PNC Economist

GDP likely grew at a healthy pace of 3.4% in the third quarter, according to one economist, who also sees weaker growth ahead for 2017.
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The economy likely grew at an annual rate of 3.4% in the third quarter, according to Gus Faucher, deputy chief economist at PNC. That would represent a slight revision from the previous estimate of 3.2%. Faucher says the revision will be due to increased investment in inventories, but he expects a downward revision to consumer spending. Looking ahead to 2017, Faucher sees continued economic expansion, with overall GDP growth of 2.4%. He says consumer spending and housing will lead growth next year, although trade will be a drag with the stronger U.S. dollar and a soft global economy. He adds that President-elect Trump's proposals on tax cuts and infrastructure spending likely won't impact the economy until the second half of 2017.