US economy grows by 2.8pc in 3Q, led by consumers

Market: Crude oil, Metals, Natural gas
30/10/24

The US economy grew by an annualized 2.8pc in the third quarter, led by consumer and government spending and exports.

Gross domestic product (GDP) growth slowed from 3pc in the second quarter, the Commerce Department reported today. Personal consumption grew at a 3.7pc pace, up from 2.8pc in the second quarter and 3.5pc a year earlier.

Today's GDP estimate is the first of three for the quarter, and comes in slightly below analyst estimates in a Trading Economics survey of 3pc growth. The latest figure marks a 10th quarter of GDP growth since a 1pc contraction in the first quarter of 2022. It comes ahead of a closely fought presidential election on 5 November in which the health of the economy is a major issue.

Exports grew by 8.9pc in the latest quarter compared with 1pc in the second quarter. Imports, which subtract from growth, grew by 11.2pc.

Government spending, including investment for defense, rose by 5pc following 3.1pc growth in the second quarter. Private domestic investment slowed to 0.3pc growth from 8.3pc growth. Residential investment fell by 5.1pc, as the housing market remains in a downturn, after declining by 2.8pc in the second quarter.

By Bob Willis

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