Third Quarter Beats Expectations

November 1, 2023

The U.S. economy continues to hold up better than many expected it would. Third quarter GDP projections are strong, despite a struggling stock market. 

Like the U.S., other developed international economies have also been subject to recent rate hiking from central banks. Rising food and energy prices as well as strong wage growth are also factors. 

Equity markets retraced some of their previous gains during the past quarter but are still positive for the year as a whole. Bond indexes also had a rough quarter because of the continued increase in interest rates. Commodities were the only major asset class to buck the trend. The Dow Jones UBS Commodity Index rebounded with a 4.71% gain in the third quarter, but it is still down 3.44% for the year so far. 

Positive inflation data could spark new market optimism should the Fed begin to show signs of becoming more accommodative soon. 

Read the Economic Outlook 

More About Economic Updates
Economic predictions heading into Q4 were frosty, but 2023 ended much better than expected. Many factors threatened economic health such as the war in Ukraine and interest rates. Read more about how the market fared and what that means for the coming year.
As the economy finds its footing, inflation begins to slow and the job market remains strong, things are looking up. However, many factors are in play for Q3 and Q4.
Let’s review the events of 2022 and how they’ve led to our current state of continuing market volatility and stubborn inflation. Even so, we still believe in the stock market over the long run.
Markets were volatile in the third quarter as investors tried to guess how the Fed would act to address inflation. While the current choppiness may continue in the near future, we still believe in the market over the long run.
The second quarter saw unrelenting inflation and a volatile stock market. Not all economic indicators were negative, however. Job growth remains strong, unemployment is down and business sentiment remains optimistic.
The global economic recovery experienced a few hiccups during the last few months. But economists are expecting things to get back on track as COVID-19 cases continue to decline. They’re projecting strong growth for the rest of this year and for 2022.
With 2021 half over and most states fully reopened after pandemic shutdowns, the economy continues to rebound. Economists are expecting strong GDP numbers for the rest of the year and a historically strong 2021 overall.

Related Products or Services

Doing business with The Standard is good for you and your clients. Our annuities offer innovative product design, desirable rates, competitive compensation, high industry ratings and excellent service.