Company News, Financial News

Good News Is Bad News for US Economy

Q3 expansion expected to lead to Q4 declines.

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By: TOM BRANNA

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When is good news really bad news? When inventory buildup is followed by consumer apathy or worse, apprehension. The US economy expanded by a 3.6% annual pace in the third quarter to mark the fastest increase in a year and a half, but the revised gain was fueled by a huge buildup in inventories that’s likely to prove fleeting, according to analysts. The spike in inventories was the largest since 1998, and such large increases are usually followed by slower inventory growth in the following q...

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