U.S. Gross Domestic Product grew 4.9 percent on an annualized basis in the third quarter. Economists expected 4.3 percent. The U.S. economy grew at its fastest pace in nearly two years, driven by a surge in consumer spending.
For comparison, in the second quarter of this year American economy grew by 2.1 percent, and in the first quarter – by 2 percent.
In the third quarter, the US economy grew at an even faster pace. And this despite the fact that interest rates are at their highest level for 22 years.
Growth in the third quarter was led by consumer spending, a sign of the economy’s remarkable resilience to higher borrowing costs and continued high inflation.
This strength is not expected to continue, however, as the economy faces a number of headwinds, including soaring bond yields and a resumption of student loan payments.
U.S. consumer spending grew 4% year-over-year in the third quarter, the strongest pace since the fourth quarter of 2021.
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