Strong Consumer Spending Propels Higher-Than-Expected Economic Growth in Third Quarter

Third-quarter GDP increased at 4.9% rate, faster than expected, boosted by robust consumer spending and inventory restocking.

Consumer spending accelerated on goods and services like healthcare, dining out, recreation, and vehicles.

Business investment softened as equipment spending declined, though inventory accumulation and smaller trade deficit offered boost.

Growth could slow in Q4 due to auto strikes and student loan repayments resuming.

Inflation pressures continued easing, with core PCE price index rising 2.4%, though overall inflation picked up.