:max_bytes(150000):strip_icc()/economicsblog-db43a0c65dd040cab5b0fc83cabe98b5.png "Economic Growth May Be on a ‘Solidly Positive Trajectory’")
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February 20, 2026 07:32 AM EST
What Happened in the Third Quarter GDP Report?
FROM 5 minutes ago
The U.S. economy grew much faster than forecasters had expected in the third quarter, thanks to a drop in imports and a surge in consumer spending.
The inflation-adjusted Gross Domestic Product grew at an annual rate of 4.4% in the third quarter, up from 3.8% in the second quarter.
That blew past the 3.2% growth forecasters had expected, and was well above the 2.6% average annual growth rate over the previous four years.
-Diccon Hyatt
February 20, 2026 07:16 AM EST
What Do Economists Expect From Today’s Report?
FROM 22 minutes ago
The economy is likely growing at a healthy clip, avoiding both a tariff-driven slump and an AI-fueled boom.
The Bureau of Economic Analysis is expected to report Friday that the inflation-adjusted gross domestic product grew at an annualized rate of 2.5% in the fourth quarter, down from 4.4% in the third quarter, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.
A report in line with expectations would show that the economy continued to expand thanks to the massive investments in data centers that are fueling the AI arms race. The AI bump could help offset the effects of the record-long government shutdown, but it likely won’t be large enough to signal a major economic boost.
“Recent data reinforce our view that real GDP growth remains on a solidly positive trajectory, largely reflecting sturdy consumer spending and a strengthening rate of business investment,” wrote a team of Wells Fargo economists Wednesday.
-Diccon Hyatt
February 20, 2026 06:37 AM EST
What Does GDP Tell Us, Really?
FROM 1 hr 1 min ago
Economists often use GDP as a measure of a country’s economic health.
It measures a country’s consumer spending, government spending, net exports, and total investments. GDP typically has a limited impact on financial markets because it is backward-looking. However, GDP data can affect markets if the actual numbers differ significantly from expectations.
Read more about the basics of GDP here.
