GDP 'Nowhere Near' 4.3%: Rosenberg Dismisses Q3 Report As 'Fugazi,' Pegs Real Growth At 0.8%

Core Viewpoint - The U.S. GDP growth of 4.3% in Q3 is being challenged by economist David Rosenberg, who claims the true growth is only 0.8% due to underlying economic weaknesses masked by government spending and depleted savings [1][3]. Economic Growth Analysis - The BEA reported a real GDP increase from 3.8% in Q2 to 4.3% in Q3, primarily driven by consumer spending, exports, and government spending [2]. - Rosenberg argues that the reported figures are misleading, suggesting that when government spending, shifting import data, and a significant decline in personal savings are excluded, the economy shows minimal expansion [3][4]. Diverging Perspectives - The report has ignited a debate among analysts, with Rosenberg viewing the economy as hollow and reliant on unsustainable spending, while Gordon Johnson from GLJ Research perceives a concerning nominal boom [4]. - Johnson noted that nominal GDP growth exceeded 8%, with a GDP price index of 3.8%, which is significantly above the Federal Reserve's target, raising concerns about inflation and the Fed's current easing policies [5][6].