The nation's economy expanded at a robust 4.9% annual rate from July through September as Americans defied higher prices, rising interest rates and widespread forecasts of a recession to spend at a brisk pace.
Shoppers look over blankets on sale in a Costco warehouse on Aug. 24, 2023, in Sheridan, Colo. On Thursday, the Commerce Department issued its first of three estimates of how the U.S. economy performed in the third quarter of 2023. …WASHINGTON — The nation’s economy expanded at a robust 4.9% annual rate from July through September as Americans defied higher prices, rising interest rates and widespread forecasts of a recession to spend at a brisk pace.
Last quarter’s robust growth, though, may prove to be a high-water mark for the economy before a steady slowdown begins in the current October-December quarter and extends into 2024. The breakneck pace is expected to ease as higher long-term borrowing rates, on top of the Federal Reserve’s short-term rate hikes, cool spending by businesses and consumers.
Several Fed officials acknowledged in speeches last week that the most recent economic data showed growth picking up by more than they had expected. Still, most of the policymakers signaled that they will likely keep their key rate, which affects many consumer and business loans, unchanged when they meet next week.
Wages and salaries in the April-June quarter, the latest period for which data is available, rose 1.7% from a year earlier, after adjusting for inflation, according to the Labor Department. That was the fastest quarterly increase in three years. Still, consumers are likely reining in their spending in the final three months of the year, and the sluggish housing market is dragging on the economy as well. This month, nearly 30 million people began repaying several hundred dollars a month in student loans, which could slow their ability to spend. Those loan repayments had been suspended when the pandemic struck three years ago.
If those trends continue, it could allow the Fed to achieve a highly sought-after “soft landing,” in which it would manage to slow inflation to its 2% target without causing a deep recession.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US New Home Sales Accelerate in SeptemberSales of new U.S. single-family homes surged in September, boosted by a chronic shortage of previously owned houses, but mortgage rates approaching 8% could curb demand.
Read more »
San Jose police arrest man in connection to fatal September shootingThe Santa Clara County Office of the Medical Examiner-Coroner said Wednesday that it still had not been able to positively identify the victim.
Read more »
US Fed proposes shrinking fees banks charge on debit card transactionsUS Fed proposes shrinking fees banks charge on debit card transactions
Read more »
Man arrested in September fatal shooting near San Jose flea marketSan Jose police on Wednesday announced an arrest in a fatal shooting near the Capitol Flea Market last month.
Read more »
IMPD K-9 officer Ringo returns to work after September stabbingThe police department posted on social media Tuesday morning that the K-9 was released from the emergency veterinarian.
Read more »
Rocket Lab expects to resume Electron launches before year-end after September failureRocket Lab is in the final stages of closing an investigation into its most recent Electron launch, which failed mid-flight in September.
Read more »