--- title: "GDP 'Nowhere Near' 4.3%: Rosenberg Dismisses Q3 Report As 'Fugazi,' Pegs Real Growth At 0.8%" description: "Economist David Rosenberg dismisses the reported 4.3% Q3 GDP growth as misleading, arguing true growth is only 0.8% after excluding government spending and savings depletion. He criticizes the GDP rep" type: "news" locale: "en" url: "https://longbridge.com/en/news/270702785.md" published_at: "2025-12-24T06:48:00.000Z" --- # GDP 'Nowhere Near' 4.3%: Rosenberg Dismisses Q3 Report As 'Fugazi,' Pegs Real Growth At 0.8% > Economist David Rosenberg dismisses the reported 4.3% Q3 GDP growth as misleading, arguing true growth is only 0.8% after excluding government spending and savings depletion. He criticizes the GDP report as manipulated, highlighting flat personal disposable income. Meanwhile, Gordon Johnson warns of overheating, noting nominal GDP growth at 8.2% and a high GDP price index. The debate reflects differing views on economic health, with stock markets showing resilience despite economic concerns. While the U.S. Bureau of Economic Analysis (BEA) reported a robust 4.3% annual increase in third-quarter real gross domestic product (GDP) on Tuesday, economist **David Rosenberg** is calling the headline number a “fugazi.” ## **The ‘Fugazi’ Factor** The president of Rosenberg Research argues that underlying economic weakness is being masked by government spending and depleted savings, calculating “true” growth at a meager 0.8%. The official BEA release shows widespread gains, with real GDP accelerating from 3.8% in the second quarter to 4.3% in the third. The increase was driven primarily by consumer spending, exports, and government spending. However, Rosenberg contends these figures are misleading. “If you think the CPI data was manipulated, so was today's GDP report,” Rosenberg stated on X. He argues that once government spending, shifting import data, and a “sharp drawdown” in the personal savings rate are stripped away, the economy is barely expanding. He specifically points to “flat personal disposable income growth” as a critical red flag contradicting the apparent consumption boom. > If you think the CPI data was manipulated, so was today's GDP report. Strip out government, sliding imports and the sharp drawdown in the personal savings rate in support of consumption (in the face of flat personal disposable income growth), and guess what? Real GDP growth was… > > — David Rosenberg (@EconguyRosie) December 23, 2025 **See Also: Top Economist Warns Unemployment, Not Stock Prices, Is True Measure Of Economic Health: ‘Close To Zero Jobs’ Created Since Tariffs Were Introduced** ## **Clash Of Narratives: Weakness Vs. Overheating** The report has sparked fierce debate among analysts interpreting the same data through vastly different lenses. While Rosenberg sees a hollow economy propped up by unsustainable spending, **Gordon Johnson** of GLJ Research sees a terrifying nominal boom. Johnson highlights that nominal GDP (growth before adjusting for inflation) surged 8.2%, accompanied by a GDP price index reading of 3.8%—far hotter than the Fed’s target. “Nominal growth in the U.S. is >8%… yet 10yr yields are AT JUST 4.17%?” Johnson questioned, arguing that the Federal Reserve's current easing cycle is “encouraging EVEN MORE inflation” in an economy that is overheating, not cooling. > So… nominal growth in the U.S. is >8%, the GDP price index just came in at 3.8% (WAY above ests.), yet 10yr yields are at JUST 4.17%? History suggests w/ nominal growth at >8%, 10yr yields should be WAY higher. And, yet, the Fed is doing QE & cutting rates, encouraging EVEN… pic.twitter.com/s38RNWm81Z > > — Gordon Johnson (@GordonJohnson19) December 23, 2025 ## **Inside The Q3 GDP Numbers** The official data support elements of both bearish views. The BEA confirmed that imports, which subtract from GDP, decreased, artificially boosting the headline number. Meanwhile, the price index for gross domestic purchases accelerated to 3.4%, up from 2.0% in the previous quarter, lending credence to Johnson's inflation fears. As markets digest the report, investors are left with a stark choice: believe the headline strength, Rosenberg's “fugazi” weakness, or Johnson's inflationary fire. ## **S&P 500, Nasdaq, Dow Jones Gain Year-To-Date** After a series of federal and economic headwinds, the stock market remained resilient in 2025, with all three major U.S. benchmark indices advancing over the course of the year. The S&P 500 was 17.74% higher, whereas the Nasdaq Composite and Dow Jones gained 22.20% and 14.27%, respectively, on a year-to-date basis. The **SPDR S&P 500 ETF Trust** (NYSE:SPY) and **Invesco QQQ Trust ETF** (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, closed higher on Tuesday. The SPY was up 0.46% at $687.96, while the QQQ advanced 0.47% to $622.11, according to Benzinga Pro data. The futures of Dow Jones, S&P 500, and Nasdaq 100 indices were lower on Wednesday. **Read Next:** - **Top Economist Says Trump's Tariff Rollbacks ‘Remarkable Admission' That His Policies Raised Prices** ***Disclaimer:** This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* *Photo courtesy: Shutterstock* ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Malaysian Shares End Week in Red Despite Positive GDP Data | Malaysian Shares End Week in Red Despite Positive GDP Data | [Link](https://longbridge.com/en/news/275884374.md) | | Indonesia 2026 GDP target is 5.4% with potential upside to 5.6%, senior minister says | Indonesia 2026 GDP target is 5.4% with potential upside to 5.6%, senior minister says | [Link](https://longbridge.com/en/news/275868466.md) | | Thailand Q4 GDP Annual Growth Beats Forecasts | Thailand’s GDP expanded 2.5% yoy in Q4 2025, accelerating from Q3's four-year low of1.2% and topping market forecasts of | [Link](https://longbridge.com/en/news/276026579.md) | | Investors brace for key economic signals | Markets are preparing for a holiday-shortened week filled with significant economic reports and corporate earnings that | [Link](https://longbridge.com/en/news/276067030.md) | | Thailand’s GDP Rises 2.4% in 2025, 5th Year of Expansion | Thailand’s economy grew 2.4% in 2025, easing from 2.9% the previous year but extending its expansion streak to five cons | [Link](https://longbridge.com/en/news/276027185.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.