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According to the Commerce Department, the United States’ GDP grew during the third quarter of the year.

What’s the deal: According to data released by the Commerce Department, the US economy expanded at an annualized rate of 2.8% between July and September 2024, slightly below the previous quarter’s 3% growth but above economists’ expectations of 2.6%.

This growth was primarily driven by consumer spending, which increased at an annualized rate of 3.7% in Q3, up from 2.8% in Q2 and 1.9% in Q1. Additionally, consumer confidence surged, with the Conference Board’s index rising from 99.2 in September to 108.7 in October, marking its highest level since early 2024 and the largest monthly gain since March 2021.

Employment: According to the data, the US employment landscape remains stable, with the unemployment rate hovering just above 4%, even amid high interest rates aimed at controlling inflation. In October, roughly 120,000 jobs were added, a notable decrease from the 254,000 added in September. Although the hiring pace slowed in October, analysts note that temporary factors like recent hurricanes and an East Coast port strike likely contributed to this dip.

Inflation: The data also indicates that inflation has ‘moderated’ significantly and is approaching the Federal Reserve’s target of 2% annual growth. Despite this, some still report significant increases in essential items like food.