US GDP Grows 2.8% in Third Quarter

The U.S. economy grew at an annualized rate of 2.8% in the third quarter of 2024, driven primarily by a 3.5% increase in consumer spending and a 7.5% rise in exports, despite a slowdown from the 3.0% growth of the previous quarter. The Bureau of Economic Analysis reported that current-dollar GDP reached $29.35 trillion, with corporate profits experiencing a decline of $10.2 billion after a significant increase in the prior quarter. Additionally, the price index for gross domestic purchases rose by 1.9%, while inflation measures showed core inflation revised down to 2.1%. Following Donald Trump's re-election, there is anticipation for a new economic agenda, although concerns about inflationary pressures from potential import taxes remain. The Federal Reserve has responded to reduced inflation rates by cutting interest rates twice, with further reductions expected. Overall, the economic outlook is characterized by resilience amid challenges such as high borrowing costs and ongoing political uncertainties.