US economy grew at a solid 2.8% pace last quarter on strength of consumer spending

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US economy grew at a solid 2.8% pace last quarter on strength of consumer spending
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The U.S. economy grew at a healthy 2.8% annual rate from July through September.

Wednesday, October 30, 2024 1:12PMThe U.S. economy grew at a healthy 2.8% annual rate from July through September, with consumers helping drive growth despite the weight of still-high interest rates.

On the other hand, growth in business investment slowed sharply last quarter on a drop in investment in housing and in nonresidential buildings such as offices and warehouses. But spending on equipment surged. In a sign that the nation's households, whose purchases drive most of the economy, will continue spending, the Conference Board said Tuesday that itsindex posted its biggest monthly gain since March 2021. The proportion of consumers who expect a recession in the next 12 months dropped to its lowest point since the board first posed that question in July 2022.

On Friday, the Labor Department is expected to report that the economy added 120,000 jobs in October. That gain, though, will probably have been significantly held down by the effects of Hurricanes Helene and Milton and by a strike at Boeing, the aviation giant, all of which temporarily knocked thousands of people off payrolls.

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