U. S. Economy's Q3 Growth: Steady Consumer Spending and Government Cash Drive the Way

You know how often people worry about economic slowdowns? Well, the U. S. economy showed it wasn't bothered by such fears in the third quarter of 2024. It grew at a steady pace of 2. 8%, which is a bit less than expected but still solid. Consumers were the heroes, spending more than they were supposed to, given high interest rates. Their purchases alone made up about two-thirds of all economic activity. And guess what? The government chipped in too, blasting through $1. 8 trillion in the past fiscal year. Now, you might ask, how come the growth isn't faster? Well, there's a catch. Imports jumped up by 11. 2%, which actually hurts GDP because we're buying stuff from other countries. Even though exports did better, they couldn't make up for it. Markets didn't freak out about this data. They were more like, "Yeah, that makes sense. " Treasury yields and stock market futures were mixed, but nobody panicked. This growth happened even as the Federal Reserve is thinking about lowering interest rates. Yes, you heard it right—despite the seemingly strong economy, they might cut rates again. Everyone thinks they'll do it at their meeting on November 7. Good news? Inflation isn't as crazy as it used to be. The personal consumption expenditures index, the Fed's favorite way to measure inflation, rose by only 1. 5%, which is below their goal. Without food and energy, it was a bit higher at 2. 2%, but still better than before. People are spending savings and using credit to keep going. The personal savings rate dropped to 4. 8%, which sounds low, but it's not bad considering they revised the last quarter's rate up. So, that's the deal with the U. S. economy in Q3 2024. Things are moving, just not as fast as some wanted. Stay tuned for updates!