GDP Research Brief

GDP growth was strong heading into the shutdown period. The U.S. economy grew at an above-consensus annual rate of 4.3 percent in the third quarter, a two-year high. Gains to real gross domestic product were driven by greater consumer spending, particularly on nondurable goods and services, as well as increased government outlays and a rise in net exports. This momentum is unlikely to be repeated in the fourth quarter, however, given the impact of the federal government shutdown and the slight drop in private domestic investment. Overall, GDP is on track to expand by about 2 percent for the calendar year.