Search
 
News

U.S. Economy Growing at Fastest Pace Since 2021

At 4.9%, Q3’s annualized GDP growth was more than double the second-quarter pace.

By Reade Pickert | October 26, 2023 at 12:53 PM
Photo: A worker puts together a cabinet at a wood shop in Auburn, Kentucky. Photographer: Luke Sharrett/Bloomberg A worker puts together a cabinet at a wood shop in Auburn, Kentucky. Photographer: Luke Sharrett/Bloomberg

The U.S. economy grew at the fastest pace in nearly two years last quarter on a burst of consumer spending, which will be tested in coming months.

Gross domestic product (GDP) accelerated to a 4.9 percent annualized rate, more than double the second-quarter pace, according to the government’s preliminary estimate Thursday. The economy’s main growth engine—personal spending—jumped 4 percent, also the most since 2021.

A closely watched measure of underlying inflation cooled a bit more than expected, to the slowest pace since 2020. The S&P 500 opened lower and Treasuries rose.

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

Inflation and Labor Are Cooling

Inflation and Labor Are Cooling

Augusta Saraiva |

Fed rate hikes are on hold for now, but some think inflation and the soft job market will lead to cuts in the near future.

Global Bonds Power Ahead

Global Bonds Power Ahead

Rita Nazareth |

Dovish bets take hold, with soft economic readings in both the U.S. and Europe fueling speculation that central banks will cut rates in 2024.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.