The American economy grew at a healthy 3.1% clip from July through September, according to the Associated Press, propelled by vigorous consumer spending and an uptick in exports, the government said in an upgrade to its previous estimate.
Third-quarter growth in U.S. gross domestic product — the economy’s output of goods and services — accelerated from the April–July rate of 3% and continued to look sturdy despite high interest rates, the Commerce Department said today. GDP growth has now topped 2% in eight of the last nine quarters.
Consumer spending, which accounts for about two-thirds of U.S. economic activity, expanded at a 3.7% pace, the fastest since the first quarter of 2023 and an uptick from Commerce’s previous third-quarter estimate of 3.5%.
Exports climbed 9.6%. Business investment grew a lackluster 0.8%, but investment in equipment expanded 10.8%. Spending and investment by the federal government jumped 8.9%, including a 13.9% surge in defense spending.
Today’s report was the Commerce Department’s third and final look at third-quarter GDP. It will publish its initial estimate of October–December growth on Jan. 30.
