The United States economy grew at an annual rate of 2.8% in the quarter starting in July and ending in September, according to the Commerce Department’s latest data.
The latest report from the department comes just days before Election Day, showing Americans that the economy is on solid footing with no recession ahead.
The economy did slow slightly from the second quarter, which saw growth at a 3% rate, but was still pushed forward by consumer spending. Consumer spending rose at an annual rate of 3.7% in the third quarter, almost a full point higher than in the second quarter.
The report also comes a week before the Federal Reserve’s next meeting, at which it will decide whether or not to cut rates further. Currently, it is believed they will issue a quarter-point cut after slashing key interest rates by half a percentage in September.
Last month’s inflation report also showed the improvements the economy is making after two years of decades-high inflation and interest rates.
Ryan Sweet, chief U.S. economist at Oxford Economics, shared with The Hill that the GDP report “sends a clear message that the economy is doing well, and inflation is moderating.”
The Conference Board’s consumer confidence index also surged in October to 108.7, up nearly 10 points from September’s 99.2. It also marked the largest monthly gain since March 2021 and well past the analysts’ forecast for October of 99.3.
As for the other data shared by the Commerce Department, exports surged throughout the third quarter, jumping at an 8.9% annual rate, while government spending rose at 9.7%, up from 4.3% in the second quarter.
As for weaker numbers, housing activity fell at an annual rate of 5.1%, compared to a 2.8% drop in the second quarter.
The housing market continues to see volatile conditions, with prices remaining stubbornly high, mortgage rates refusing to fall, and supply being almost non-existent compared to just four years ago.
Despite this, the economy continues to move forward, ignoring previous predictions of an impending slowdown.