Robust consumer spending, AI-related investment power US economy in third quarter
The US 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 busine...
In the third quarter, the US economy experienced its fastest growth in a year, growing at a 3.4% annualized rate, the Commerce Department reported. Consumer spending, which makes up over two-thirds of the economy, surged by 3.8% during the July-September period, mirroring the second quarter's growth. Simultaneously, businesses ramped up investment in artificial intelligence by 20.9%, the fastest rate in six years, contributing 1.16 percentage points to GDP growth.
Despite higher oil prices due to the Middle East conflict, the robust consumer and business spending overpowered this drag. Government spending also grew at a 5.3% rate, helping bolster the economy. However, inflation concerns persist, with the Personal Consumption Expenditures price index rising 0.5% in September, indicating a 3.6% increase over the past year.
The Federal Reserve is considering raising interest rates in December, given the strong GDP growth and accelerating inflation.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- U.S. economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment pbs.org
- Robust consumer spending, AI-related investment power US economy in third quarter koreatimes.co.kr
- US economy expands 3.4% in Q3 as consumer spending, AI investment rise business-standard.com
