Third-quarter GDP growth was powered primarily by consumer spending and retail inventories, which typically reflect short-term confidence in the economy. Business investment and capital expansion fell over the past three months, warning signs that the Trump boom could be past its prime.
“It is an actual sugar rush. This is what it looks like when you have a sudden surge of income into households,” said Daniel Alpert, managing partner of investment firm Westwood Capital.
“The economy is overhyped.”