David Zalubowski/AP
Not only have US consumers continued to open up their wallets, but other parts of the economy are also displaying some resilience.
Washington, DC
CNN
—
The US economy expanded at a remarkably strong pace in the third quarter, despite interest rates at their highest level in 22 years.
Gross domestic product, a measure of all goods and services produced in the economy, grew at an annualized 4.9% rate in the third quarter, the Commerce Department reported Thursday. GDP is adjusted for inflation and seasonal swings.
That’s well above the second quarter’s 2.1% pace and faster than economists’ expectations of a 4.3% rate.
Robust consumer spending fueled growth in the third quarter, a sign of the economy’s surprising resilience in the face of tougher borrowing costs and persistently high inflation. Spending grew from July through September by an annualized rate of 4%, its strongest pace since the fourth quarter of 2021. Americans splurged both on goods and services.
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