Monthly GDP surged 1.3% higher in October

Monthly GDP surged 1.3% higher in October, following two months of small declines. The sharp October gain was largely accounted for by a sharp increase in inventory investment, but domestic final sales and net exports posted decent gains, too. The level of GDP in October was 5.0% above the third-quarter average at an annual rate. Our latest tracking forecast of 3.7% GDP growth in the fourth quarter assumes that half of the increase in Monthly GDP in October is reversed in November, with that decline more than accounted for by an assumed decline in inventory investment.

Contact Macroeconomic Advisers
Tweet Follow @macroadvisers