{
  "id": 17037142,
  "title": "AI investment, consumer spending likely to boost US growth in Q3",
  "url": "https://urgent.news/2026/10/29/ai-investment-consumer-spending-likely-to-boost-us-growth-in-q3",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-29T07:33:23.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/10/29/ai-related-investment-consumer-spending-likely-to-boost-us-economic-growth-in-q3"
  },
  "original_language": "en",
  "account": "The U.S. economy is expected to experience robust growth in the third quarter (Q3) due to a combination of resilient consumer spending and AI-driven business investment, according to economic forecasts. Resilient consumer spending, which accounts for more than two-thirds of the economy, is anticipated to expand at a rate above 3.0% after growing at a 3.8% pace in Q2. Despite households' concerns over high energy and food prices, Faucher, chief economist at PNC Financial, noted that fundamentals for consumers remain strong, with job growth, wage gains, and a healthy stock market supporting spending.\n\nAI-driven business investment is projected to contribute significantly to the economy's growth, with business spending on equipment expected to increase at a double-digit pace for the third consecutive quarter. This AI-related investment is also likely to bolster spending on intellectual property products. However, the trade deficit, driven by strong demand for capital goods linked to the AI spending boom, is estimated to subtract at least 4 percentage points from GDP growth in Q3. Nonetheless, economists believe that the positive impact of AI investment will likely outweigh the drag from the trade deficit.\n\nThe Commerce Department will release its advance estimate of Q3 GDP on Thursday, less than a week before the midterm elections, which will determine control of Congress. The economy is currently expanding at a pace well above the Federal Reserve's non-inflationary growth rate of around 2%. The Fed left its benchmark interest rate unchanged at 3.75%-4.00% range, acknowledging that inflation remains elevated. While some Fed officials acknowledge uncertainty due to geopolitical developments, domestic spending has been resilient. The Fed is expected to raise rates in December, according to economists.",
  "summary": "Resilient consumer spending and AI-driven business investment more than offset the impact of higher oil prices stemming from the conflict in the Middle East.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}