BREAKING US economy grows at 4.9% in third quarter – its strongest pace since 2021 – fueled by household spending
- According to the US Department of Commerce, US GDP rose 4.9 percent in the third quarter
- That is the highest growth in almost two years, fueled by consumer spending
The U.S. economy grew at its fastest pace in nearly two years this summer thanks to a surge in consumer spending.
Gross domestic product rose by 4.9 percent year on year in the third quarter, according to preliminary figures released by the Commerce Ministry on Thursday.
That was an increase from 2.1 percent in the second quarter and the largest growth since the fourth quarter of 2021.
It comes two weeks before the Federal Reserve’s next policy meeting, when it will decide whether to adjust interest rates.
High consumer spending has led to inflation and is difficult for officials to control, despite ruthlessly raising interest rates to boost borrowing costs.
Spending growth in the third quarter was preceded by strong job gains in August – a general indication of economic strength.
But while spending appears to be strong, other signs indicate the surge may soon end.
This is a breaking news story. Updates are coming.
Gross domestic product grew by 4.9 percent on an annual basis in the third quarter, figures from the Ministry of Commerce showed on Thursday.