The US economy grew at a 2.8% annualised rate in the third quarter, slightly below the 3% recorded in the second quarter, but still a very strong outcome.
Consumer spending was robust, growing 3.7%, with spending on goods increasing by 6%. However, residential investment fell 5.1% due to high mortgage rates and affordability challenges.
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Overall, this is a strong set of growth numbers, especially compared to other major economies. Experts forecast a growth of 2.2% in the fourth quarter, buoyed by strong consumer spending. However, a cooling jobs market is expected to present challenges, with weaker business surveys suggesting growth may moderate to around 1.5% for 2025.
On the inflation front, the core PCE deflator rose at a 2.2% annualised rate, slightly above the expected 2.1%.
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