US economy grew at robust pace in third quarter

October 30, 2024

(NEW YORK) -- The U.S. economy grew at a robust pace over three months ending in September, slowing slightly from the previous quarter but continuing to dispel any concern about a possible slowdown. The fresh report marks one of the last major pieces of economic data before the presidential election.

U.S. GDP grew at a 2.8% annualized rate over three months ending in September. That figure fell slightly below economists' expectations.

Economic growth was fueled by surge in consume spending, an uptick in exports and strong federal government spending, the U.S. Bureau of Economic Analysis said.

The new data arrived weeks after the Federal Reserve cut its benchmark interest rate a half of a percentage point. The landmark decision dialed back a years-long fight against inflation and offered relief for borrowers saddled with high costs.

Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed's target of 2%.

Meanwhile, the labor market has proven resilient. Employers hired 254,000 workers in September, far exceeding economist expectations of 150,000 jobs added, U.S. Bureau of Labor Statistics data showed. The unemployment rate ticked down to 4.1%, hovering near a 50-year low.

This is a developing story. Please check back for updates.