US economy grows faster than expected in report out just ahead of elections
Summary
U.S. GDP grew at a 3.4% annualized rate in the third quarter, above economists’ 3.2% forecast. Consumer spending and business investment related to artificial intelligence supported growth, while higher oil prices and household concerns weighed on the outlook.Key Facts
- The Commerce Department’s advance estimate put third-quarter GDP growth at 3.4% annualized.
- Economists surveyed by Reuters had forecast growth of 3.2%.
- Consumer spending rose at a 3.8% annualized pace, matching the second quarter’s rate.
- Consumer spending makes up more than two-thirds of the U.S. economy.
- The Federal Reserve kept its benchmark interest rate in a range of 3.75% to 4% and said inflation remained elevated.
- Economists expected the Fed to raise interest rates in December.
- The report came less than a week before midterm elections that would determine control of Congress.
- Average U.S. gasoline prices remained above $4 a gallon amid the conflict involving the U.S., Israel and Iran.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
