U.S. economy grew at 2.8% rate in the third quarter
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The U.S. economy expanded at an 2.8% annual rate in the July-through-September quarter, the Commerce Department said on Wednesday.
Why it matters: One of the final snapshots before Election Day shows America is on solid footing, with no recession in sight.
By the numbers: The economy, which slowed slightly from the 3% growth rate in the second quarter, was propelled forward by robust consumer spending. It rose at a 3.7% annual rate in the third quarter, up nearly a full point from the prior quarter.
- Exports also surged, rising at a 8.9% annual rate —well above the 1% in the second quarter. Federal government spending rose at a 9.7% annualized rate (compared to the 4.3% in the second quarter).
- There were also strong results from business investment, with spending on equipment rising at an 11.1% rate.
Zoom in: That activity offset soaring imports. Higher imports of goods suggest resilient demand, but they act as a drag on economic growth in GDP calculations.
- Housing was also weak: activity fell at a 5.1% annual rate versus the 2.8% drop in the second quarter.
The intrigue: The report comes before the Federal Reserve policy decision next week, where policymakers are expected to cut rates by a quarter-point—though strong data and slightly hotter-than-expected inflation has raised doubts about the Fed's rate-cutting path.
The bottom line: The economy keeps cruising along, defying expectations of a slowdown. The data may give the Harris campaign final bragging points on the economy days before voters head to the polls.
Go deeper: Trump and Harris economies are inextricably linked
Editors note: This story was updated with additional details and a new chart.
