Newsroom
3Q GDP gets downward revision
The latest third-quarter real GDP estimate shows that economic growth was a little slower than previously thought, but NAFCU Chief Economist Tun Wai said there are also some encouraging signs that the recovery is strengthening.
The Bureau of Economic Analysis reported thatthird-quarter real GDP came in at 1.8 percent, a slight decline from the 2 percent figure that was reported previously. The latest numbers represented the third estimate on third-quarter real GDP from the bureau.
A key factor in the downward adjustment, noted Wai, was a reduction in estimated healthcare spending. "All being told," he said, "downward revisions to consumer spending, partially offset by an upward revision to private inventories, contributed to the government's revised take on third-quarter GDP."
The strongest contributors to third-quarter economic growth were fixed non-residential investments, which rose by 15.7 percent and contributed 1.49 percent to GDP, and consumer spending, which rose by 1.7 percent and contributed 1.24 percent to GDP. Net exports contributed 0.43 percent to GDP growth and residential investments added 0.03 percent to GDP growth.
On the flipside, the change in private inventories reduced GDP growth by 1.35 percent, while a slight drop in government spending reduced GDP growth by 0.02 percent.
The core personal consumption expenditures deflator, the Federal Reserve's preferred measure of inflation, decreased from 2.3 percent in the second quarter 2011 to 2.1 percent in the third quarter 2011.
Despite the downward revision, Wai said he is "cautiously optimistic" about the state of the economic recovery. "Unemployment claims continue to fall, while corporate profits and business investment remain strong," he said. "Final sales of domestic product, which measures demand for domestic goods and services, grew by the second-largest pace in four years."
Even as these developments signal that companies may hire more workers soon, a number of downside risks remain, the economist warned. "The most significant of these is the threat of a European financial crisis spilling over to U.S. markets. Barring that, we should see incremental improvements continue in the coming months."
Share This
Related Resources
Add to Calendar 2024-05-06 14:00:00 2024-05-06 14:00:00 Overview of Regulation CC Join us for this webinar, Overview of Regulation CC, and you’ll delve into the intricacies of the Expedited Funds Availability Act and Regulation CC. This includes gaining invaluable insights on effectively implementing funds availability requirements, navigating the process of placing holds on deposited items and crafting comprehensive disclosures for your members. Don't miss this opportunity to enhance your understanding of regulatory compliance in the financial landscape. Key Takeaways Know the funds availability requirements Learn what must be included in disclosures Comprehend extended holds Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 18, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Overview of Regulation CC
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Add to Calendar 2024-05-03 09:00:00 2024-05-03 09:00:00 Blind Spots in the Boardroom Listen On: Key Takeaways: [04:19] For a board to change its practices first it needs to be committed to different outcomes. It takes about 30 times for a board to start to be in a new conversation before they start to get their brain rewired to embody the change [07:24] In merger conversations we lose sight of what is important for the member. We need to look at what the continuing organization will look like and what is the leadership the membership and continuing organization need and deserve. [12:39] An educated board and executive team are a sharper team. When you have sharper leaders in the organization good things come from that. [24:22] If we are not taking care of that relationship with the CEO then we are strategically hampered. With a good CEO evaluation, the board is higher performing, the CEO is more attentive to being high performing, and the relationship is high performing and more genitive. Web NAFCU digital@nafcu.org America/New_York public
Blind Spots in the Boardroom
preferred partner
DDJ Myers
Podcast
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Get daily updates.
Subscribe to NAFCU today.