The U.S. economy saw another robust yet slightly under-expectation growth in the third quarter of 2024, largely driven by resilient consumer spending that has exceeded predictions of a slowdown.
The gross domestic product (GDP), reflecting the total output of goods and services between July and September, rose by 2.8% on an annualized basis, as per a Commerce Department report released on Wednesday, adjusted for inflation and seasonal factors.
This figure fell short of economists’ expectations of 3.1%, following a 3% growth rate in the preceding quarter. This initial release is the first among the three reports to be published by the department.
Despite concerns around high interest rates and the sustainability of economic stimulus post the covid crisis, the report affirms that the U.S. economic expansion has persisted.
Meanwhile, personal consumption expenditures, serving as a barometer for consumer behavior, rose by 3.7% during the quarter, marking the strongest performance since Q1 of 2023, and contributing almost 2.5 percentage points to the overall figure.
