The US economy demonstrated robust growth of 4.9% in the third quarter, defying challenges like inflation and rising interest rates.
This growth in Q3 was the fastest in almost two years, more than double the 2.1% rate in the previous quarter.
The driving force behind this expansion was consumer spending, encompassing purchases of items such as cars, dining out, and entertainment.
Government spending and increased business inventories also contributed to the growth.
Despite the Federal Reserve’s efforts to restrain growth and inflation by raising short-term interest rates to 5.4%, the economy continued to accelerate.
In the April-June quarter, wages and salaries, adjusted for inflation, experienced their fastest quarterly increase in three years.
Households benefited from rising home prices, a surging stock market, and historically low-interest rates, enabling them to maintain strong financial positions.