US economy grew at a scorching 5 percent annual rate last quarter

1. The Commerce Department announced Tuesday morning that the US economy grew at a 5 percent annual rate in the third quarter, revised up from a previous estimate of 3.9 percent.
2. In the second quarter, GDP grew at a 4.6 percent annual rate.
3. That makes mid-2014 by far the best run of economic growth the US has enjoyed in years.
4. The excellent November jobs report suggests that the good news has likely extended into the fourth quarter.

More good news to come

Nothing about the future is certain, of course. But it's worth emphasizing that this is news about the third quarter which ended in September. In other words, this is economic news from before the big drop in oil prices — something that is almost universally expected to boost the American economy. That means all else being equal we should expect to see some new sources of strength in the 4th Quarter.

Peering beneath the hood of the Q3 numbers, there's nothing funny happening with inventories or anything that would cast that into doubt. Real final sales of domestic product also grew at 5 percent, and inflation was subdued, so this growth looks sustainable at least in the short term.

Will you support Vox’s explanatory journalism?

Most news outlets make their money through advertising or subscriptions. But when it comes to what we’re trying to do at Vox, there are a couple of big issues with relying on ads and subscriptions to keep the lights on:

First, advertising dollars go up and down with the economy. We often only know a few months out what our advertising revenue will be, which makes it hard to plan ahead.

Second, we’re not in the subscriptions business. Vox is here to help everyone understand the complex issues shaping the world — not just the people who can afford to pay for a subscription. We believe that’s an important part of building a more equal society. And we can’t do that if we have a paywall.

So even though advertising is still our biggest source of revenue, we also seek grants and reader support. (And no matter how our work is funded, we have strict guidelines on editorial independence.)

If you also believe that everyone deserves access to trusted high-quality information, will you make a gift to Vox today? Any amount helps.

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via