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The U.S. economy grew at a surprisingly strong 4.3% annual rate in the third quarter as consumer spending, exports and government spending all increased.
From July to September, US gross domestic product – the economy’s total output of goods and services – rose from its 3.8% growth rate in the April-June quarter. Department of Commerce Said on Tuesday. Analysts surveyed by data firm FactSet had forecast 3% growth over the period.
However, inflation remains higher than federal Reserve Would like. The Fed’s preferred inflation gauge – called the personal consumption expenditures index, or PCE – climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.
Excluding volatile food and energy prices, so-called core PCE inflation was 2.9%, up from 2.6% in the April-June quarter.
consumer spendingThe economy, which accounts for about 70% of US economic activity, grew at a 3.5% annual pace last quarter, up from 2.5% in the April-June period.