dc188 US third quarter GDP revised up on consumer, export boost

File – A generator and its blades are prepared to head to the open ocean for the South Fork Wind farm from State Pier in New London, Conn., Dec. 4, 2023. (AP Photo/Seth Wenig, File)

Washington, United States — The world’s biggest economy grew at an annual rate of 3.1 percent in the July-September period, up from earlier estimates of 2.8 percent, the Commerce Department said.

This was due to “upward revisions to exports and consumer spending,” the report said, although it noted that the increase was partially offset by a downward revision to private inventory investment.

Article continues after this advertisement

In the second quarter, GDP growth was 3.0 percent.

FEATURED STORIES BUSINESS BSP unveils new polymer banknote series BUSINESS BIZ BUZZ: MVP confirms John Hay plans BUSINESS New Zealand falls into recession with abrupt economic slowdown

READ: US economy grows at 2.8% pace in Q3 on consumer spending

The US economy has shown resilience even as consumers drew down on savings from the Covid-19 pandemic period and grappled with higher interest rates as the Federal Reserve battled to rein in inflation.

Article continues after this advertisement

Consumer spending in particular has been a key factor behind growth — even as Americans felt the pinch from higher costs of living — supported by a healthy jobs market.

Humpert, who has been raising sheep in northwestern Germany’s Marienmuenster since 1986 in a bid to save endangered breeds, has since lost 140 of her 500 sheep.

Article continues after this advertisement

“Compared to the second quarter, the acceleration in real GDP in the third quarter primarily reflected accelerations in exports, consumer spending, and federal government spending,” the Commerce Department said on Thursday.

Article continues after this advertisement

A consensus estimate pegged third quarter GDP growth at 2.8 percent initially, unchanged from before, according to Briefing.com.

“The composition of revisions does strengthen our conviction that the economy is on solid footing and that 2025 will be another good year,” said Ryan Sweet, chief US economist at Oxford Economics.

Article continues after this advertisement

Despite the boost from consumer spending, Sweet warned of variations depending on household incomes.

free online slots

High-income households “are reaping the benefits of a tight labor market, increases in housing, and stock market wealth,” while lower-income households remain under financial pressure, he said, adding that this is unlikely to change next year.

He also cautioned that inventories and net exports “will be volatile, particularly in the first half of next year,” amid the threat of tariffs from President-elect Donald Trump who takes office in January.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Business are likely to bring forward some imports ahead of potential tariffs.dc188

READ NEXT El Salvador plans to sell or shut its crypto wallet Titantic shipbuilder stays afloat thanks to Spanish deal EDITORS' PICK FBI searches home of LA deputy mayor suspected of City Hall bomb threat PBA: Jordan Heading carries Converge past Phoenix BSP unveils new polymer banknote series PNP partners with TikTok vs online scams, exploitation Golf club members join legal battle in Camp John Hay Sovereignty, accountability, and hope: Key Philippine stories of 2024 MOST READ House passes bill postponing BARMM polls 3rd impeach rap filed vs VP Duterte; Leni Robredo ally an endorser SC fires judge involved in wife’s illegal deals Pogo ban’s windfall Follow @FMangosingINQ on Twitter --> View comments