The first reading of third quarter 2023 Gross Domestic Product (GDP) showed that the U.S. economy grew by 4.9%, higher than estimates, thanks in large part to the increase in consumer spending, inventories and government spending. Note that this data is subject to revision when the second and final readings are released on November 29 and December 21, respectively.

What’s the bottom line? GDP functions as a scorecard for the country’s economic health, so the strong reading in the third quarter seems promising. However, the increased spending seen over the summer months may not be sustainable, which could mean we’ll see a slowdown in GDP for the fourth quarter of this year.