US economy surges, beats expectations in Q3

The Commerce Department announced yesterday that the US economy grew faster than previously estimated in the third quarter. The Gross Domestic Product (GDP), measuring all goods and services produced, surged at a faster-than-expected 5.2%, surpassing the initial estimate of a 4.9% pace.

The increase primarily resulted from a rise in fixed investments and a hike in state and local government spending. This surge represents the swiftest rise in GDP since late 2021 amid COVID-19 relaxations.

However, consumer spending experienced a decrease to 3.6% due to shortages following an auto strike, while home construction drove expansion.

Corporate profits also experienced an uptick, accelerating by 4.3% compared to the previous quarter’s gain of 0.8%.

Despite hurdles, the economy stays resilient. Wall Street stocks climbed, Treasury prices rose, and the dollar held steady.