Real GDP growth slowed slightly to 2.66% over the twelve months ending in Q3, compared to 3.04% for the previous quarter.
Real quarterly growth is essentially unchanged at 0.70% (2.8% annualized) in Q3.
Nominal GDP growth (gray below) slowed to 4.94% for the four quarters ending in Q3. Ten-year Treasury yields are lower, indicating that monetary policy remains supportive.
This is borne out by the Chicago Fed National Financial Conditions Index at a low -0.56.
Credit markets also signal strong liquidity, with Moody’s Baa corporate bond spread narrowing to 1.49%.
Conclusion
Real GDP growth is slowing gradually, as expected during a rate-cut cycle. Financial market liquidity remains strong, and there is nothing particularly concerning.