The American economy expanded at a healthy 2.8% annual pace from July through September on strong consumer spending and a surge in exports, the government said Wednesday, leaving unchanged its initial estimate of third-quarter growth
ByPAUL WISEMAN AP economics writerNovember 27, 2024, 8:39 AMThe American economy expanded at a healthy 2.8% annual pace from July through September on strong consumer spending and a surge in exports, the government said Wednesday, leaving unchanged its initial estimate of third-quarter growth.
U.S. gross domestic product — the economy’s output of goods and services — slowed from the April-July rate of 3%, the Commerce Department reported Wednesday.
But the GDP report still showed that the American economy — the world’s largest — is proving surprisingly durable. Growth has topped 2% for eight of the last nine quarters.
Within the GDP data, a category that measures the economy’s underlying strength rose at a solid 3.2% annual rate from July through September, up from 2.7% in the April-June quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Still, American voters — exasperated by high prices — were unimpressed by the steady growth and chose this month to return Donald Trump to the White House to overhaul the nation’s economic policies. He will be supported by Republican majorities in the House and Senate.
Consumer spending, which accounts for about 70% of U.S. economic activity, accelerated to a 3.5% annual pace last quarter, up from 2.8% in the April-June period and fastest growth since the fourth quarter of 2023. Exports also contributed to the third quarter’s growth, increasing at a 7.5% rate, most in two years. Still, the third-quarter growth in both consumer spending and exports was lower than the Commerce Department initially estimated.
But growth in business investment slowed sharply on a drop in investment in housing and in nonresidential buildings such as offices and warehouses. By contrast, spending on equipment surged.
When he takes office next month, President-elect Trump will inherit an economy that looks broadly healthy.
Growth is steady. Unemployment is low at 4.1%. Inflation, which hit a four-decade high 9.1% in June 2022, has fallen to 2.6%. That is still above the Federal Reserve’s 2% target, but the central bank felt satisfied enough with the progress against inflation to cut its benchmark interest rate in September and again this month. Most Wall Street traders expect the Fed to cut rates again in December.
Wednesday’s report also contained some encouraging news on inflation. The Federal Reserve’s favored inflation gauge — called the personal consumption expenditures index, or PCE — rose at just a 1.5% annual pace last quarter, down from 2.5% in the second quarter. Excluding volatile food and energy prices, so-called core PCE inflation was 2.1%, down from 2.8% in the April-June quarter.
The public still feels inflation’s sting: Prices are about 20% higher than they were in February 2021, just before inflation started picking up
Trump has promised an economic shakeup. On Monday, for example, he vowed to slap new import taxes on goods from China, Mexico and Canada. Mainstream economists view such taxes — or tariffs — as inflationary. That is because they are paid by U.S. importers, who then seek to pass along the higher costs to their customers.
Wednesday’s report was the second of three looks at third-quarter GDP. The Commerce Department will issue the final report on Dec. 19.
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This story has been corrected to show that consumer spending rose at the fastest pace since the fourth quarter, not the first quarter, of 2023.
US economy grows at 2.8% pace in third quarter on consumer spending
Scottie's Playtime 
You know, there’s a guy here in town who has a t-shirt that more people need to see, I think. It says: “If God is our Father, then I am your Brother.” And that is most certainly true for anyone who’s a Christian believer. That being said, it is a challenge for me to love those people, but most Christians who actually believe would never erase these people who have it skewed, either. We would not pass a law making their existence illegal.
We do have a Constitution that makes certain that every human is equal to every other human, though. So, once the holidays are over, here’s hoping the administrative offices of this state have boatloads of mail, email, and phone messages reminding them of that fact.
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Hi Ali. I do love you and your optimism. However the constitution doesn’t say everyone is equal to every other person. In fact the ERA has been ratified and not implemented as the 28th amendment. Antonin Scalia in a talk once told a group of women that based on the constitution as written and without an amendment to say it he couldn’t consider women as equal to men. It took an amendment to give women the right to vote. Black people needed an amendment to be taken as equal to whites.
Today we see that women are not equal in their own say over their bodies and healthcare. Name one law restricting the healthcare of men or saying that a man must give his body to sustain another? Is there a law blocking men from going out of state to get a vasectomy? Or are states pushing laws to block Viagra from being sent through the mail or being prescribed as they are with Mifepristone.
As for the LGBTQ+ we see that the constitution is not protecting the equality of gay or trans people. We see that in every article I post or the red states wouldn’t be able to do what they have done so far.
But I agree with you. We can hope and work for the people to force the politicians to protect and create the equality we do want in our society. But remember the fundamentalist religious people do not want an equal society. They want a society / country run by white men straight cis men. They want women to accept being obedient and subservient to men. They want black people to understand their place at the back of the bus and to remain there. They demand that the LGBTQ+ be removed from public view, remain hidden and scared to be outed due to the consequences. So we have to counter their influence and money in our communities and in politics. Hugs
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Well, it took amendments (some still not passed, as you note,) to make sure that the line in the Constitution that ensures equality is enforced. I understand what you’re saying, but the words are literally there, and people can use those to let their administration know what they expect from them. Justice Scalia, of all people, knew as a matter of his elite education what arcane language is, and how it was not arcane at the time it was used, when “men” meant “people,” for pete’s sake. But, he had an intimidating personality, too, and used it. I still can’t believe people let him get away with it, but there it was, and here we are. I’m not certain his replacement is aware of the word arcane, come to think of it, he’s only there for the money.
A point which doesn’t literally work in our favor can work in our favor on this stuff; Roe v Wade was decided law, but has been overturned. Granted not in favor of better enlightenment but of darkness, but it’s the principle of things considered decided can be undecided. But lets hope this community doesn’t allow things to go far enough to be decided by the Supreme Court as opposed to themselves, as it ought to be.
My big hope, which may be simple optimism, and may be misguided as to trust, is that people will see that if they don’t get their own government back under the control of we the people, we never will. It’s been let go to a minority of people who thoughtfully do their civic duty as to our neighbors, but worse, to those who have firearms and/or money to intimidate into allowing the minority to not govern of, for, and by us, but of, for, and by the minority, who are not the thoughtful ones, but are selfish instead.
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Hi Ali. I share your hope if not your faith in the people right now. I also plan to do the hard work to make that better world for everyone even if those fighting against us benefit from it also. I know you are fighting hard to make that world also. Along with others. I am glad for the help. Hugs
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