What does the strong jump in Q3 Gross Domestic Product (GDP) mean about the economy?
The gain more than offset the decline in the year’s first half. The quarterly change helped maintain the annual rate at 1.8% (see chart). The underlying details were not very encouraging. Most of the gain came from a narrowing of the trade deficit. Construction activity fell at an accelerating rate, with residential plunging 26.3% and nonresidential down 15.3%.