GDP growth increases while some show caution

The Gross Domestic Product growth rate increased during the third quarter.

The American Gross Domestic Product level improved to 2.7 percent during the third quarter, which was much higher than the initial estimate, according to a report from the Department of Commerce. Continued increases in GDP may help improve recovery situations for commercial property managers, despite some industry members noting caution regarding the rise.

This Real GDP figure was reevaluated to be much higher than the 2.0 percent initially reported. Additionally, it is significantly higher than the second quarter's growth figure, which was 1.3 percent. Several factors helped grow the GDP to its third quarter level. Changes in real private inventories put more than 0.7 percentage points on the third quarter's revised figure.

The report explained that real personal consumption expenditures rose 1.4 percent last quarter, which was slightly less than during the second quarter. Real nonresidential fixed investment dropped more than 2 percent, while it was up more than 3.5 percent during the second quarter.

Federal government consumption expenditures and gross investment levels increased 9.5 percent last quarter, which was significantly higher than the 0.2 percent drop during the second quarter, the department noted. Exports of goods and services jumped 1.1 percent, as well.

Some show concern about the future
The increase was dismissed by some industry members due to the worries about the "fiscal cliff," as well more focus on the usual commercial business spike as the year, The Wall Street Journal explained. The initial revision prediction by industry experts was actually slightly higher, for a total of 2.8 percent.

"On its face, this is a positive development but the composition of the adjustment is hardly encouraging," Dan Greenhaus, chief global strategist for BTIG, told the news source. "We see absolutely no reason whatsoever that growth – and by extension jobs – should surprise to the upside in 4Q and quite frankly, with the fiscal cliff debate likely to drag out through much of if not all of next year, no reason to think growth surprises to the upside next year either."

Greenhaus also noted in his interview with the news source that the final quarter's GDP should be closer to 1 percent of growth, far below the last level.

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