GDP rose by 2.8% in the third quarter, short of economists’ expectations of 3.1%, and driven primarily by consumer spending
The pace of US economic growth slowed over the summer but continued its two-year expansion, according to data released on Wednesday, days before millions of voters decide whether Kamala Harris or Donald Trump is best placed to lead it forward.
US gross domestic product a broad measure of economic health – rose by 2.8% in the third quarter, short of economists’ expectations of 3.1%, and down from the previous quarter’s 3% reading. The increase was driven primarily by consumer spending, exports and federal government spending
US policymakers scrambled to bring down inflation from its highest level in a generation two years ago. The Federal Reserve rapidly increased interest rates to tamp down prices in a move that economists feared risked tipping the world’s largest economy into recession. Such warnings failed to materialize.
“Despite earlier fears that the US economy was headed for recession, growth continued to outperform,” said Paul Ashworth, chief North America economist at Capital Economics.
