The US economy’s growth in the third quarter was stronger than anticipated, with upward modifications to consumer expenditures and business capital expenditures.
Real gross domestic product, which represents the total value of every commodity and service produced in the nation, increased at a 3.2% rate annually, according to Thursday’s Commerce Department report. That is higher than the previously announced 2.9% rise.
The figures demonstrate the continuing resilience of consumer and business expenditure, even in the face of rising borrowing costs and accelerated inflation. A buoyant labor market as well as increasing wages have acted as a catalyst for individuals to continue spending, however, it is uncertain whether consumers can keep this momentum going into 2023. The latest report modified personal consumption significantly higher, with a 2.3% rise compared to an earlier prediction of 1.7%.
At the same time, an important measure of inflation – the Personal Consumption Expenditures Price Index not including food and energy – increased by 4.7% on an annualized basis during the third quarter, slightly higher than the original measurement. Data from November will be made public on Friday.
A different primary indicator of activity – labeled Gross Domestic Income – expanded by a 0.8% rate. When coupled with GDP, which is observed intently by those who assess when downturns occur, it grew a more solid 2%.
