WASHINGTON — The U.S. economy demonstrated solid performance with a 2.8% annual growth rate between July and September, driven by robust consumer spending and a significant boost in exports, according to a government announcement on Wednesday. This figure remains consistent with the initial estimate of third-quarter growth previously reported.
The Commerce Department’s data indicated a slight deceleration in gross domestic product (GDP) growth compared to the 3% rate recorded from April to July. Nevertheless, it highlights that the U.S. economy, renowned as the largest globally, is exhibiting surprising resilience, with growth exceeding 2% in eight of the past nine quarters.
Despite this ongoing economic expansion, American voters expressed dissatisfaction with the prevailing high prices and opted to elect Donald Trump back into the presidency. He is anticipated to introduce comprehensive changes to the nation’s economic policies, with support from Republican majorities in both the House and Senate.
Conversely, a notable decline in business investment became evident, particularly in housing and nonresidential developments such as office spaces and warehouses. Conversely, investments in equipment saw a marked increase, indicating a shifting focus in capital expenditures.
As President-elect Trump prepares to assume office next month, he will step into an economy that appears to be broadly healthy. The economic indicators suggest steady growth, with unemployment at a low rate of 4.1%. Inflation, which peaked at a four-decade high of 9.1% in June 2022, has receded to 2.6%. Although still above the Federal Reserve’s target of 2%, the central bank’s satisfaction with inflation trends led to reductions in the key interest rate in September and again recently, with expectations of another cut by Wall Street traders anticipated in December.
Despite the favorable economic metrics, the public remains acutely aware of inflation’s effects, as prices have risen approximately 20% since February 2021, just prior to the inflation upswing.
Trump has articulated plans for a significant economic overhaul, including proposals to impose new import tariffs on goods coming from China, Mexico, and Canada. Economists generally caution that such tariffs tend to be inflationary, as the costs are often absorbed by U.S. importers who may subsequently pass this financial burden onto consumers.
Wednesday’s report marks the second of three evaluations concerning third-quarter GDP, with the final assessment set to be released on December 19.