US Economy Grows More than Expected
The GDP figure for the third quarter was +3.1%
The US gross domestic product (GDP) figure for the third quarter of 2024 exceeds forecasts. The US economy grew thanks to strong consumer spending. Annual GDP growth was 3.1%, the Commerce Department’s Bureau of Economic Analysis reported, up from previous estimates of 2.8%. In the April-June period, growth was 3%. The higher than expected growth can be attributed mainly to private consumption (consumer spending rose by 3.7%) and export growth.
Other economic data released on December 19 included the number of jobless claims for the past week, which fell 22,000 to 220,000, also in this case a better reading than analysts had expected.
This news comes a day after the Federal Reserve cut rates for the third consecutive time. However, central bank president Jerome Powell hinted that there would be only two reductions in the cost of money next year, down from the four previously expected. “It is quite clear that we have avoided a recession,” Powell commented. “The US economy is performing admirably, I’m very pleased with the economic situation … and we want to keep it going.” Analysts said caution on further rate cuts would be prompted by concerns that President Trump, who will enter the White House in January, may pursue inflationary policies.
