Economist E.J. Antoni says he doesn’t see any positive indicators looking forward despite third quarter growth in gross domestic product, the broadest gauge of economic output.
“Unfortunately, despite the positive number today I don’t see any positive indicators in terms of looking forward,” Antoni, a research fellow for regional economics in the Center for Data Analysis at The Heritage Foundation, said Thursday during an appearance on Newsmax‘s “Chris Salcedo Show.”
“Instead, I see additional negative growth, which is particularly troubling given that for the year we are flat and that’s not an exaggeration. Economic growth for the entirety of 2022 now stands at .08%, not even 100th of 1 percentage point.”
The U.S. economy grew at a 2.6% annual rate from July through September, snapping two straight quarters of contraction and overcoming high inflation and interest rates just as voting begins in midterm elections in which the economy’s health has emerged as a paramount issue.
Thursday’s better-than-expected estimate from the Commerce Department showed that the nation’s gross domestic product grew in the third quarter after having shrunk in the first half of 2022. Stronger exports and consumer spending, backed by a healthy job market, helped restore growth to the world’s biggest economy at a time when worries about a possible recession are rising.
Antoni also said mortgage rates will continue to rise.
“We don’t even have interest rates yet as high as the inflation rate so sadly we have a long way to go. Just to put into perspective how much these higher interest rates are costing the American people on average, it’s an additional $1,200 a year in borrowing costs, but that’s just the average.
“If you’re one of the poor people who are trying to buy a home right now you’re in an even worse situation because now you are faced with a mortgage that’s going to cost you over $10,000 more each year on a 30-year mortgage. That’s an additional $300,000 for the same house.”
Information from The Associated Press was used in this report.
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