Strong Q3 Growth Reported but Recession Concerns Remain for 2023

U.S. GDP growth may have topped 5% in Q3, exceeding expectations. Consumer spending has remained strong despite inflation and rate hikes.

Growth has been aided by government subsidies, reduced trade deficit, and inventory rebuild. But consumers may pull back soon given inflation and rising rates.

While Q3 growth is strong, it doesn't preclude a recession. The economy grew solidly before the Great Recession and 1990 recession.

Headwinds remain like higher rates, gas prices, caution by businesses and banks. Many still predict a 2023 recession though less severe than 2008.

Rapid growth before recessions is not unusual. The keys will be if consumers pull back on spending given inflation and rising costs.