Strong Economic Growth in Q3 Lowers Recession Risk, But Headwinds Remain

GDP grew 4.9% in Q3 2023, beating expectations and lowering recession odds. Consumer spending remained strong.

Growth was driven by increases in consumer spending, inventories, exports, and government spending.

High mortgage rates near 8% will slow housing market and weigh on future growth.

Recession fears abated for now, but growth expected to slow in 2024. Rates to stay high for longer.

Inflation remains a concern. More rate hikes possible if inflation rebounds.