Strong Consumer Spending Drives Robust Economic Growth in Third Quarter

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

Retail sales have risen in recent months, as have credit card balances, indicating consumers are spending freely.

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

Residential investment provided a boost for the first time in two years, even with higher interest rates, as new homes are the only ones available.

The pace of economic growth is expected to slow in the fourth quarter due to factors like depletion of savings and need to refinance debt.