Key facts
- US economic growth likely accelerated in the third quarter.
- GDP is forecast to have increased at a 3.2% annualized rate.
- Consumer spending is projected to have increased at above a 3.0% pace.
- Business spending on equipment is expected to have seen double-digit growth for a third consecutive quarter.
- The Federal Reserve maintained its benchmark interest rate at 3.75%-4.00%.
US economic growth likely accelerated in the third quarter, with GDP anticipated to increase at a 3.2% annualized rate, up from 2.2% in the second quarter. This growth is attributed to resilient consumer spending and significant business investment in artificial intelligence, which helped offset factors like higher oil prices and a widening trade deficit. Consumer spending, which constitutes over two-thirds of the economy, is projected to have grown at a pace exceeding 3.0%. Business investment in equipment is expected to show double-digit growth for the third consecutive quarter, partly driven by AI-related expenditures. The Federal Reserve maintained its benchmark interest rate between 3.75% and 4.00%, acknowledging elevated inflation but noting strong economic activity.