US consumer spending helps GDP grow by 2.8%

The US economy expanded at a solid pace in the third quarter, largely powered by a broad-based advance in consumer spending as inflation continued to cool.

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Gross domestic product (GDP) increased at a 2.8 per cent annualised pace in the third quarter, the second estimate of the figures from the Bureau of Economic Analysis showed on Nov 27. The economy's primary growth engine - consumer spending - advanced 3.5 per cent, the most in 2024.

The GDP report showcases the durability of an economic expansion that has been tested by lingering price pressures, high borrowing costs and political uncertainty. While progress on inflation has levelled out more recently, the Federal Reserve has started reducing interest rates.