US Markets
Thursday, October 26th, 2023 1:48 pm EDT
Key Points
- The U.S. economy exceeded expectations by growing at a seasonally adjusted annualized pace of 4.9% in the third quarter of the year, despite challenges such as higher interest rates, inflation, and various domestic and global headwinds.
- This growth was driven by several factors, including strong consumer spending, increased inventories, exports, residential investment, and government spending. Consumer spending, in particular, saw a significant increase of 4% in the quarter.
- Despite concerns and challenges, the U.S. economy has remained resilient. While many economists expect a slowdown in the coming months, a recession is not anticipated as long as no unforeseen shocks occur. The article also notes that the Federal Reserve is likely to maintain its current policies, as there is no imminent recession on the horizon.
The article reports that the U.S. economy grew faster than expected in the third quarter. Gross domestic product (GDP) increased at an annualized pace of 4.9% from July to September, up from the previous quarter’s 2.1%. This growth was driven by strong consumer spending, increased inventories, exports, residential investment, and government spending. Consumer spending saw a notable increase, with personal consumption expenditures rising by 4%. Despite challenges like higher interest rates, ongoing inflation, and global headwinds, the U.S. economy has maintained its resilience. While this growth exceeded expectations, some economists anticipate a slowdown in the coming months but do not foresee a recession. The Federal Reserve might consider keeping policy tight, although interest rate hikes are not expected in the near term. The article also mentions other economic indicators, such as jobless claims and durable goods orders, and notes that the U.S. economy has been supported by strong consumer spending, even as government transfer payments decrease.
Overall, the article highlights the robust performance of the U.S. economy in the third quarter and its ability to withstand various challenges.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/26/us-gdp-grew-at-a-4point9percent-annual-pace-in-the-third-quarter-better-than-expected.html
