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US GDP Grows at Solid 2.8% Pace, Helped by Consumer Spending

The U.S. economy grew at a solid annual rate of 2.8% in the third quarter, driven by robust consumer spending, according to the latest government data. This growth rate, which was slightly below the initial estimate of 3%, reflects a resilient economy despite challenges like high interest rates and inflation. Consumer spending, which accounts for about two-thirds of economic activity, increased by 3.6%, supported by a strong labor market and wage gains. However, business investment saw a decline, and the housing sector continued to struggle due to elevated borrowing costs. The report also highlighted a slight decrease in inflation pressures, with the core PCE price index rising at a 2.3% pace, down from the previous quarter's 2.5%. This economic performance suggests a potential soft landing for the U.S. economy, balancing growth with inflation control.

Read the Full Bloomberg L.P. Article at [ https://www.bloomberg.com/news/articles/2024-11-27/us-gdp-grows-at-solid-2-8-pace-helped-by-consumer-spending ]