Economic Growth and Consumer Spending
The economy grew at a 2.8% annual rate from July to September, with consumer spending accelerating to a 3.7% pace, highlighting the economy's durability despite high interest rates.
Exports also contributed significantly, increasing at an 8.9% rate, while business investment saw a sharp slowdown, particularly in housing and nonresidential buildings.
Inflation and Federal Reserve's Response
The 's preferred inflation gauge showed a moderation, rising at a 1.5% pace, the lowest in over four years, indicating progress in controlling inflation.
In response to the economic conditions, the Fed has begun to cut interest rates, with expectations of more rate cuts in the upcoming meetings, aiming to foster further economic growth.