The U.S. Economy Gets Boost Thanks To Consumer Spending

economic growth in scrabble tiles
Via PIX4FREE
Adé Hennis
November 14, 2024

The third quarter’s gross domestic product (GDP), a measure of all the goods and services produced during a three-month period, is estimated to have increased by 2.8%. The GDP also measures the economy’s underlying strength.

The Q3 GDP failed to reach the 3.1% estimated by economic exports and was less than the 3.0% increase in Q2. High interest rates and political uncertainty were linked to why the rate wasn’t as high as the second quarter.

Consumer spending on goods and services contributed mainly to the Q3 GDP increase. In its report, the Bureau of Economic Analysis highlights nondurable goods such as prescription drugs, motor vehicles, and parts as significant contributors. Health care and food services led the service sector.

The 2.8% increase is just a preliminary estimate, and will be revised twice later in the year.

"With consumer spending growth north of 3.5%, the U.S. consumer is not showing any hint of a slowdown," said Olu Sonola, head of U.S. economic research at Fitch Ratings. "Far from it. With an economy this strong, it is difficult to imagine that labor market conditions will deteriorate sharply over the near term."

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