RCF Vice President Peter Bernstein is a contributor to the Philadelphia Fed’s Survey of Professional Forecasters.
Positive Signs for Economy Continued in 2017Q3
The economy continued its solid performance in the third quarter of 2017, growing at a 3.3 percent rate, somewhat above our Q3 forecast of 2.8 percent growth. Business investment was a bit stronger than projected though much of that was due to a build-up in inventories which often provides only a temporary boost. Consumer spending was a little weaker than we had projected, but this also resulted in drop-in imports. Inflation, unemployment, job growth, and housing starts were all very close to our projections while interest rates were slightly lower than we expected.