U.S. economy grew 2.8% last quarter, powered by consumer spending

The U.S. system grew astatine a 2.8% yearly gait past 4th arsenic consumers continued to unfastened their wallets contempt elevated liking rates. 

Forecasters expected nan country's gross home merchandise — nan full worth of equipment and services produced successful nan U.S. — to travel successful astatine 2.6% successful nan three-month play ended successful September, according to a study of economists by nan information patient FactSet. 

The American economy, nan world's biggest, has shown astonishing resilience successful nan look of sharply higher borrowing rates arsenic nan Federal Reserve tightened monetary argumentation successful a bid to tame inflation. Despite wide predictions that nan system would succumb to a recession, however, it has kept growing, pinch hiring and user spending holding steady.

Consumer assurance soared successful October, reaching its highest level since January 2024, according to nan Conference Board. That could awesome that U.S. households will proceed spending, a cardinal to economical growth. 

"The percent of consumers expecting a recession successful nan adjacent 12 months fell to its lowest since nan mobility was first posed successful July 2022, pinch conscionable nether two-thirds of respondents believing that a recession is either somewhat aliases very apt successful nan adjacent 12 months," noted analysts astatine PNC Financial Services Group successful a report.

The Associated Press contributed to this report.

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