US economy posts stronger Q3 growth
The US economy grew at a healthy 3.4 percent annual pace from July through September, accelerating from the second quarter on strong consumer spending and investment in artificial intelligence. The expansion in third-quarter gross domestic product – the nation’s output of goods and services – was faster than the 2.2 percent growth registered from April through June, the US Commerce Department…
The US economy expanded at a robust 3.4 percent pace in the third quarter, outpacing the 2.2 percent growth experienced in the previous quarter, according to the US Commerce Department. This acceleration was driven by robust consumer spending and significant investment in artificial intelligence. Consumer spending rose by an impressive 3.8 percent, while business investment increased sharply, signifying the AI boom's impact.
Despite higher energy prices resulting from conflicts with Iran, the world's largest economy has demonstrated resilience. Economists had forecasted a 3 percent growth rate for the third quarter, as indicated by a FactSet survey. The surge in AI-related investments propelled this growth, with business investment excluding housing rising by 12.7 percent.
Notably, investment in information processing equipment surged by 37.4 percent, software increased by 9.6 percent, and research and development by 7.5 percent. However, housing investment, impacted by elevated mortgage rates, declined by 3.3 percent, marking the sixth consecutive quarterly decline. This report represents the initial estimate of third-quarter GDP growth from the Commerce Department, with two additional estimates to follow.
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