Kiplinger’s latest forecast for the GDP growth rate
The economy is on a roll
The economy rolled on in the third quarter of 2017, growing by 3%, despite the hurricanes that battered the United States during the quarter. While the storms reduced spending on both home and business construction, a surge of new-car buying took place in September as flood victims in Texas replaced damaged vehicles.
The economic momentum should continue into the fourth quarter. Consumer spending is likely to remain strong, given the jump in consumer sentiment surveys in October. Business investment in equipment is picking up. And extra spending to repair damage from the hurricanes will continue to boost the economy. Tens of thousands of houses still need to be repaired, and tens of thousands of vehicles need to be replaced. Houston alone will need to ship or truck in tons of freight to replace what was lost.