He gross domestic product (GDP) of the United States (USA) has skyrocketed and grown at a rate of 4.9% in the third quarter of the year, according to the estimate published this Thursday by the country’s Department of Commerce, which represents an acceleration of the American economy , after the 2.1% growth recorded in the second quarter. For its part, the consensus expected a deceleration to 4.2%.
The U.S. economy grew at the fastest pace in nearly two years last quarter, driven by an increase in consumer spending.
The Gross Domestic Product accelerated at a rate 4.9% annualized, more than double the second-quarter pace, according to the government’s preliminary estimate Thursday. The economy’s main growth driver, personal spending, rose 4%, also the most since 2021.
Meanwhile, a measure of the inflation core that is closely followed cooled to the slowest pace since 2020.
US economy: how this data impacts the Fed’s decision
The largest economy in the world has held firm in the face of high prices and a rapid rise in borrowing costs, repeatedly eclipsing forecasters’ expectations and tempering recession fears. The main driver of that resilience It is the enduring strength of the labor market, which continues to drive household demand.
Looking ahead, the durability of economic momentum in the fourth quarter will help Federal Reserve officials determine whether to raise interest rates again. Many economists expect growth to slow in the final months of the year, as borrowing costs limit purchases of big-ticket items and student loan payments resume.
But if demand remains strong, it risks maintaining inflation above the central bank’s 2% target and may justify a more restrictive monetary policy.
At next week’s meeting, policymakers are expected to leave the benchmark interest rate unchanged, with some pointing to the government’s rapidly rising borrowing costs as a reason for caution. performance 10-year Treasury bonds surpassed 5% earlier this week for the first time in 16 years.
“Given the uncertainties and risks, and how far we have come, the committee is proceeding carefully,” Fed Chairman Jerome Powell, referring to the central bank’s Federal Open Market Committee, which sets rates.
So far, the data suggests that inflation continues to dissipate. The underlying personal consumption expenditure price index, which excludes food and energy costs, fell at a rate of 2.4% in the third quarter. Including the most volatile categories, the overall PCE price index rose 2.9%.
Source: Ambito
