US Economy Grows 2.8% in Q3

The U.S. economy grew at an annualized rate of 2.8% in the third quarter of 2024, slightly below the expected 3.0% and down from 3.0% in Q2. This growth was primarily driven by strong consumer spending, exports, and federal government expenditures, although an increase in imports offset some of these gains. The core Personal Consumption Expenditures (PCE) index rose by 2.2%, lower than the previous quarter's 2.8% but above the expected 2.1%. Despite this slower growth, the economic landscape remains robust, with low layoffs and inflation-adjusted wage growth returning to pre-pandemic levels. The upcoming jobs report and the Federal Reserve's interest rate decision on November 7 are keenly anticipated by investors. Overall, the data suggests a continuation of above-trend growth, even amid external challenges such as hurricanes affecting business operations.