Third Quarter GDP - Strong Headline, Weak Details

Written by Philip Rich, Chief Investment Officer,  November 1, 2022.

The US economy grew 2.6% in the third quarter, following two quarters of negative growth. Exports, especially exports of gas and oil, contributed to the positive result, as did growth in services. However, residential investment contracted sharply, spending on tangible goods declined, and inventories shrank. Sales, which are often a clearer indicator of economic health, only grew 0.1%. While the headline is a welcome change from the negative growth of the first half of the year, the US economy is still shaky. US consumers are being impacted by both record inflation and rising interest rates.

US GDP Expands 2.6% in Third Quarter

  • 2.6% compares to -1.6% in Q1 and -0.6% in Q2
  • Energy exports were a key contributor
  • Final sales almost flat at 0.1%
  • Services grew 1.24%
  • Inflation is hurting consumption; housing is down

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Nora Bagby

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Adam Martin, CFA

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Philip Rich

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This information is for informational purposes only and does not constitute investment advice.


  • GDP – Bureau of Economic Analysis
                            Employment & Inflation – Bureau of Labor Statistics
                            Interest Rates – Federal Reserve
                            P/E S&P 500 –
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