US economy beats expectations at 2.8% growth in Q3

The US economy grows 2.8% in the third quarter, surprising analysts who expected the world’s largest economy to grow only 1.9%. It was the strongest pace of GDP growth in a year. But analysts forecast a weaker fourth quarter, after a Washington budget battle forced a 16-day government shutdown in October that cut an estimated $24 billion from the economy. The White House welcomes the good news, but Scott Hoyt of Moody’s Analytics warns about the repercussions of Congress’ decision to use stop-gap budget and debt ceiling measures to reopen the federal government and avoid a debt default. Hoyt says the government shutdown will cut a half percentage point of growth in the fourth quarter.


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