U.S. economy grew at a 2.8% pace in the third quarter, less than expected

Source: CNBC

Published Wed, Oct 30 2024 8:31 AM EDT Updated 3 Min Ago


The U.S. economy posted another solid though slightly disappointing period of growth in the third quarter, propelled hire by strong consumer spending that has defied expectations for a slowdown.

Gross domestic product, a measure of all the goods and services produced during the three-month period from July through September, increased at a 2.8% annualized rate, according to a Commerce Department report Wednesday that is adjusted for inflation and seasonality.

Economists surveyed by Dow Jones had been looking for an increase of 3.1%. The economy accelerated at a 3% pace in the second quarter. The report confirms that the U.S. expansion has continued despite elevated interest rates and long-standing worries that the burst of fiscal and monetary stimulus that carried the economy through the Covid crisis wouldn't be enough to sustain growth.

However, resilient consumer spending, which accounts for about two-thirds of all activity, has helped keep the economy moving, as has a relentless wave of government spending that pushed the budget deficit to more than $1.8 trillion in fiscal 2024.

Read more: https://www.cnbc.com/2024/10/30/us-gdp-q3-2024.html