The US economy showed continued strength in the third quarter, growing at a 3.1% annual rate. This growth was fueled by robust consumer spending and an increase in exports. Despite high interest rates, the economy remains resilient.
The American economy grew at a healthy 3.1 percent annual clip from July through September, propelled by vigorous consumer spending and an uptick in exports, the government said in an upgrade to its previous estimate. Third-quarter growth in U.S. gross domestic product – the economy’s output of goods and services – accelerated from the April-July rate of 3 percent and continued to look sturdy despite high interest rates, the Commerce Department said Thursday.
GDP growth has now topped 2 percent in eight of the last nine quarters. American voters were unimpressed by the steady growth under Democratic President Joe Biden. Exasperated by prices that remain 20 percent higher than they were when an inflationary surge began in early 2021, they chose last month to send Donald Trump back to the White House with Republican majorities in the House and Senate. Trump will inherit an economy that looks healthy overall. The unemployment rate remains low at 4.2 percent even though it is up from the 53-year low 3.4 percent reached in April 2023. Inflation hit a four-decade high 9.1 percent in mid-2002. Eleven interest rate hikes by the Federal Reserve in 2022 and 2023 helped bring it down – to 2.7 percent last month. That is above the Fed’s 2 percent target. But the central bank still felt comfortable enough with the progress against inflation to cut its benchmark rate Wednesday for the third time this year. Thursday’s report was the Commerce Department’s third and final look at third-quarter GDP. It will publish its initial estimate of October-December growth on Jan. 30
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