- Third-quarter GDP forecast to increase at a 2.4% rate
- Trade seen accounting for rebound in growth
- Consumer spending likely slowed; inventories wild card
- Weekly jobless claims expected to rise moderately
WASHINGTON, Oct 27 (Reuters) – U.S. economic growth likely rebounded in the third quarter, driven by a shrinking trade deficit, but that would grossly exaggerate the economy’s health as the Federal Reserve’s aggressive interest rate increases dampen demand.
The Commerce Department’s advance third-quarter gross domestic product on Thursday is expected to show underlying demand in the economy flat last quarter amid a slowdown in consumer spending and moderate growth in business investment.
Still, the anticipated rebound in growth after two straight quarterly declines in GDP would be further evidence that the economy was not in a recession, though the risks of a downturn have increased as the Fed doubles down on rate hikes to battle the…