On Wednesday, the Commerce Department of the US government reported that the nation expanded at a 2.9 percent annual rate in the quarter, according to its advance estimate, laying to rest worries about a recession. The report said the July to September quarter slowed slightly from the second quarter’s real three percent growth rate. Analysts, including those at CWEB, expect the fourth quarter, which is also called the holiday season quarter, to see a higher growth rate.
The US Bureau of Economic Analysis (BEA) released its report today. Robust consumer spending at 3.7 percent annual rate in the third quarter increased by a point. It combines goods and services. Consumer spending can also increase in the fourth quarter as web fans spend more in the months leading up to the holiday season than in other quarters in a year.
The third quarter also saw a boost in exports, which increased at an annual rate of 8.9 percent. Business equipment spending also rose at a rate of 11.1 percent. However, there was also an increase in imports, which offset the economic growth as they brought down the GDP, though these imports of goods also indicate resilience in the economy.
The labor market added 254,000 workers in September, much higher than economists’ expectations of 150,000 jobs added in the same month. Unemployment is at a nearly half-century low, remaining at 4.1 percent, which also shows an economic recovery.
All eyes will be on the Federal Reserve Policy next week. Although inflation has slowed down significantly, it remains higher than the Fed’s 2 percent target.
The second estimate for the third quarter from July to September 2024 will be released on November 27, 2024. It will be based on more complete data, according to the BEA
The US economy is cruising along, giving Vice President Kamala Harris a talking point as the nation has avoided recession. Many Western countries have reported much slower resilience in their economies. The US remains the most resilient, outperforming its peers at the G10. It remains the largest economy in the world despite a slowdown and geopolitical challenges.
