The U.S. economy grew at a 2.6% annual rate from July through September, according to a report from Associated Press. The boost comes just as voting begins in midterm elections in which the economy’s health has emerged as a paramount issue. The estimate is better than expected and the Commerce Department showed that the nation’s gross domestic product — the broadest gauge of economic output — grew in the third quarter after having shrunk in the first half of 2022. Gains in exports, consumer spending, and a healthy job market helped restore the economy’s growth at a time when worries about a possible recession are rising.
Consumer spending expanded at a 1.4% annual pace in the July-September quarter, down from a 2% rate from April through June, and government spending rose at a 2.4% annual pace. However, housing investment plunged at a 26% annual pace, affected by surging mortgage rates as the Federal Reserve aggressively raises borrowing costs to combat chronic inflation.
