U.S. Economy Expands 2.8% Before Election

The U.S. economy continued its robust expansion in the third quarter of 2024, with a GDP growth rate of 2.8%, slightly below economists' expectations of 3.1% but still significantly strong. The growth was primarily driven by resilient consumer spending, which rose at a 3.7% annualized rate, and federal government spending, despite ongoing high interest rates and concerns over housing sector slowdowns. This economic performance, occurring just before the presidential election, has become a focal point for voters, with many favoring Trump's economic approach over Harris's. The economy's strength, marked by declining inflation and a solid job market, has been a surprise to many forecasters, defying predictions of a recession. However, critiques persist regarding the sustainability of growth driven by government spending rather than private sector investment.