Available indicators for the fourth quarter seem a little more mixed, but the general consensus of economic forecasters is that real GDP will expand in the fourth quarter at a pace similar to that in the third quarter.
Although real incomes continue to be squeezed by significantly higher energy prices, recent spending indicators, including last Friday’s retail sales report, suggest that consumption was well maintained in October. In addition, housing construction and home sales have been maintained at a robust pace in recent months, and recent declines in mortgage rates should continue to support demand.