Strong Economic Growth in Summer, But Slowdown Expected Ahead

Gross domestic product expanded at a 4.9 percent annual rate over the summer, powered by prodigious consumer spending.

But the pace is not expected to be sustained.

Retail sales have risen in recent months, as have credit card balances.

Government spending continued to fuel growth, particularly in defense, with the restocking of weapons and ammunition after transfers to aid Ukraine.

Pitfalls loom in the fourth quarter, including the depletion of savings, the resumption of mandatory student loan payments and the need to refinance maturing corporate debt at higher rates.