U.S. Economy Surges in Q3 With Strongest Growth Since 2021 Despite Looming Risks

U.S. GDP grew at a 4.9% annual pace in Q3, exceeding expectations and marking the biggest gain since Q4 2021.

Growth was driven by strong consumer spending, which made up 68% of GDP, despite high inflation and interest rates.

Consumer spending rose 4% in Q3, fueled by spending on goods and services as households draw down savings.

Economists think growth will slow in coming months due to rate hikes, inflation, student loan payments resuming.

While resilient so far, risks remain from geopolitical tensions like Israel-Hamas fighting and the Ukraine war.