Q3 GDP
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Q3 GDP +4.3%: Consumer Carries Economic Heft
ZACKS· 2025-12-23 16:16
Economic Growth - Q3 GDP growth was reported at +4.3%, significantly exceeding the +3.2% expected by analysts, marking the strongest growth in two years and an increase from Q2's +3.8% [2] - Core GDP for Q3 reached +2.9%, 30 basis points above expectations and the highest since Q1's +3.3% [3] Consumer and Business Sentiment - December Consumer Confidence is expected to improve to 91.7 from 88.7 in the previous month, indicating a positive outlook among consumers [6] Durable Goods Orders - Durable Goods Orders for October fell to -2.2%, below the consensus estimate of -1.1%, marking the fourth negative print of 2025 [4] - Excluding volatile Transportation costs, Durable Goods Orders showed a slight increase of +0.2% in October, the weakest performance since April [5] Market Implications - The strong GDP growth suggests a lower likelihood of interest rate cuts by the Federal Reserve, particularly at the upcoming January FOMC meeting, where the chance of a cut was previously at +24% [5]