Robust consumer spending, AI-related investment power US economy in third quarter
WASHINGTON — The U.S. economy grew at its fastest pace in a year in the third quarter, shrugging off higher oil prices stemming from the conflict in the Middle East as consumers maintained robust spending and businesses doubled down on investment in AI. The better-than-expected increase in gross domestic product last quarter reported by the Commerce Department on Thursday was in stark contrast to…
The United States economy expanded at its fastest pace in over a year during the third quarter, despite surging oil prices due to Middle Eastern conflicts, according to a Commerce Department report released on Thursday. The robust growth, driven by strong consumer spending and increased investment in artificial intelligence, stood in stark contrast to President Donald Trump's low approval ratings and declining consumer sentiment.
The advance GDP report came just a week before the midterm elections, which will determine control of Congress. Economists argued that the impressive growth, coupled with other data released on Thursday indicating accelerating and broadening inflation in September, supported the case for the Federal Reserve to raise interest rates in December. On Wednesday, the U.S. central bank maintained its benchmark overnight interest rate within the 3.75 percent-4.00 percent range but acknowledged that inflation remained elevated.
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- Robust consumer spending, AI-related investment power US economy in third quarter koreatimes.co.kr
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