Economic Growth Expected to Slow Sharply in Q4 as Recession Fears Mount
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The economic growth in Q3 is expected to slow down sharply in Q4, with GDP growth estimated at just 1.0% according to median forecasts.
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This is a substantial slowdown from Q3's 4.9% growth rate, which was the highest in nearly 2 years.
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Most Q4 economic data is still missing, so the forecast should be viewed cautiously, but evidence is mounting for slower growth.
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Even if the US avoids a recession starting in Q4, a sharp slowdown could raise warning signs for 2024.
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The labor market will be a key indicator for tracking recession risk, as consumer spending makes up 2/3 of the economy.