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U.S. real gross domestic product increased at an annual rate of 2.8 percent in the third quarter, according to the “advance” estimate by the U.S. Department of Commerce, released today.
In the second quarter, real GDP increased 2.5 percent.
However, today’s GDP estimate masks underlying weakness, according to The Conference Board.
“To be sure, 2.8 percent growth looks strong, said Kathy Bostjancic, The Conference Board’s director for macroeconomic analysis. “But the more fundamental and longer-term issue is consumers are still unable to release their pent-up demand since income gains remains so paltry. In fact, even with very weak industrial activity, there was a very large and unintended inventory build. The large stockpile built up in Q3, along with the government shutdown, will weigh down Q4 GDP growth.”
Growth in the staffing industry is strongly correlated with GDP growth, according to research from Staffing Industry Analysts.