Economy showing signs of weathering storms
Summer growth a healthy 2.8 percent
“Congress punched it in the face in the fourth quarter,” he said.
The better growth seen in the summer also was driven in part by an accumulation of inventories by businesses, so it probably overstated the health of the economy, he said.
“Don’t get too excited ... Actual demand for stuff isn’t so strong,” he said, and the rate of consumer spending growth, at 1.5 percent, was the slowest in two years.
“The economy temporarily has gained altitude on too much inventories,” said Sung Won Sohn, at economics professor at California State University Channel Islands.
“Consumer spending, the lion’s share of the economy, slowed as they try to pinch pennies and stretch their limited income. The holiday shopping season could be lackluster,” he said.