Gross domestic product accelerated to a 4.9 per cent annualised rate, more than double the second-quarter pace.
The US economy grew at the fastest pace in nearly two years last quarter on a burst ofGross domestic product accelerated to a 4.9 per cent annualised rate, more than double the second-quarter pace, according to the government’s preliminary estimate Thursday. The economy’s main growth engine — personal spending — jumped 4 per cent, also the most since 2021.
Looking ahead, the durability of economic momentum in the fourth quarter will help Federal Reserve officials determine whether to raise interest rates again. Many economists expect growth to slow in the final months of the year as borrowing costs limit purchases of big-ticket items and student-loan payments resume.
“Given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” Fed Chair Jerome Powell said last week, referring to the central bank’s rate-setting Federal Open Market Committee. More generally, the economy’s latest report card is likely to be welcomed by President Joe Biden, who has had trouble convincing Americans hurting from high prices that his policies are working.While a flurry of consumer spending was the main driver of growth, inventories added 1.3 percentage points to third-quarter growth. Government spending also contributed to the advance.
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