ABC News: US Economy Grew At “Blistering Pace” In Q3

October 26, 2023 Economy, Politics

The U.S. economy grew at a blistering pace over three months ending in September, more than doubling growth in the previous quarter and rebuking worries about a possible recession. The robust performance, however, complicates the fight to dial back inflation.

Fresh GDP data released on Thursday, which exceeded economist expectations, reinforces other recent indicators of a strong economy resisting the Federal Reserve’s effort to cool price increases with a slowdown.

A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.

Axios reports:

Personal consumption expenditure spending rose at a 4% annual rate, adding 2.7 percentage points to overall growth. It reflects a summer surge in Americans’ spending seen in a wide range of data.

There were also strong contributions to GDP from a buildup in business inventories (which added 1.3 percentage points to the total), and government spending (which added 0.8 points).

Flashback: This time a year ago there were widespread predictions of a recession in 2023. The new data — on the heels of solid 2%-plus readings in the first two quarters of the year — make the odds appear remote.

the US economy is doing well, chapter 89 https://t.co/ImHaXHD6mP

— John Harwood (@JohnJHarwood) October 26, 2023

The US economy grew at the fastest pace in nearly two years last quarter, fueled by a surge in consumer spending https://t.co/vclcJ4Fh11

— Bloomberg (@business) October 26, 2023