❮ Return to Blog

America’s Economy Keeps Defying Expectations

America’s Economy Keeps Defying Expectations

Estimated reading time: 0 minutes

Against the Grain

Many economists and market watchers started the year expecting an economic downturn as high inflation, and high interest rates, threatened to weigh on consumer spending and investments. But so far, they’ve been rather wrong.

Despite these ongoing headwinds, as well as geopolitical upheaval, the U.S. economy has stayed the course – and then some.

Stats Over Speculations

We will only get the U.S. economy’s third quarter report card tomorrow morning, but expectations look buoyant.

The Federal Reserve Bank of Atlanta pushed its Q3 growth projections to 5.4%, consulting firm High Frequency Economics nudged its predictions up to 4.6%, and Goldman Sachs (GS) elevated its growth estimates for the third quarter to 4% from a prior 3.7%.

What’s inspiring this optimism? Inflation has come off its peak, with consumer price inflation sitting at 3.7% year-over-year in September, a stark contrast from its 9% peak last year. Higher prices across the board have buoyed sales numbers as Americans didn’t stop spending in spite of economists’ worries.

The strong labor market is certainly helping on that front: In September, the job market blew past estimates, adding 336,000 jobs and recording a historically low unemployment rate of 3.8%.

Path Forward

So we’ve avoided a recession to this point. Yay! What’s next?

We don’t have a crystal ball either. Robust growth could be a brief flare. Year-over-year weekly wages saw their first decline since May, which could hurt consumer spending if it becomes a trend. On the flip side, the economy could still overheat, reigniting inflation, and hampering spending.

SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.
The information and materials may contain hyperlinks to other websites, we are not responsible for the content of any linked sites. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi HK. These links are provided for informational purposes and should not be viewed as an endorsement. The risk involved in using such hyperlinks shall be borne by the visitor and subject to any Terms of Use applicable to such access and use.
Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.
Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.


About SoFi Hong Kong

About SoFi Hong Kong

SoFi – Invest. Simple.


SoFi Hong Kong is the All-in-One Super App with stock trading, robo advisor and social features. Trade over 15,000 US and Hong Kong stocks in our SoFi App now.