Housing aside, the economy's still growing
Gross domestic product -- a measure of economic growth -- was 3.9 percent in the third quarter, according to preliminary government estimates. BusinessWeek reports that that's better than "economists' 3.1% forecast, and slightly better than the 3.8% growth seen in the second quarter."
This comes despite a 20 percent drop in residential construction. BusinessWeek has an on-the-one-hand, on-the-other from economists:
Back-to-back GDP gains of nearly 4.0% for the past two quarters show "the economy is incredibly resilient" in the face of the credit problems that rocked the markets in August, Edward Lazear, Chairman of the Council of Economic Advisors, said on CNBC. The impact of rising oil prices was mitigated by a strong labor market and, most importantly, by particularly strong growth in U.S. exports, which has been aided by expansion in the global economy, he said.However, "while the economy statistically looks very good, it feels much worse than the numbers indicate," writes Ken Kim of Stone & McCarthy Research Associates. "The headwinds the economy faces grew stronger in the third quarter and show no signs of abating anytime soon. The economy continues to be supported by solid consumer spending and booming exports, but we wonder how much longer the consumer can continue to carry the load."
