US Economy Grows 2.8% in Q3, Consumer Spending Drives Growth

| Updated on November 30, 2024
US economy grows 2 8 percent in Q3

As reported by the government on Wednesday, the American economy has experienced a strong annual growth rate from July to September which is 2.8% and this growth rate was driven by robust consumer experience along with a significant increase in exports. This figure remains consistent with the initial estimation of the growth in the third quarter. 

The Commerce Department says that the U.S. gross domestic product (GDP) which shows the total output of goods and services has reduced from a 3% growth rate which was observed in the period April to July. 

However, the GDP report indicates that the American economy which is considered the largest globally, continued to show remarkable resilience and the growth exceeded 2% in eight quarters of the last nine. 

The GDP figures show that a specific category that measures the fundamental strength of the economy increases at a solid annual rate of 3.2% from July to September which is 2.7% more than the previous quarter. This category consists of consumer spending and private investment while excluding more volatile components such as inventories, exports and government expenditure. 

Despite the steady growth, American voters frustrated by increased prices opted to elect Donald Trump as the president to reform the economic strategies of the nation. Trump will be backed by Republican majorities in both the House as well as the Senate. 

Over 70% of the economic activities of the U.S. are constituted by consumer spending, which saw a growth of 3.5% in the last quarter in which exports played a major role,  rising at a 7.5% rate which is the highest in two years. As President-elect Trump prepares to assume office soon, he will take over an economy that looks to be generally healthy. The Commerce Department after sharing the reports of two assessments of Q3 GDP will soon release its final report.

Kathleen Kirkwood

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