U.S. GDP rose by 2.8% in Q3, driven by strong consumer spending and cooling inflation, defying recession concerns ahead of the presidential election.
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In an economic report released today, just days before the upcoming presidential election, gross economic product rose at a 2.8% rate in the third quarter. This growth is attributed to an increase in consumer spending as inflation cools.
The U.S. economy is stronger than ever and is experiencing growth in many categories due to increased spending by the U.S. population. This report is one of three crucial indicators scheduled for this week; the next will be the policy-making meeting of the Federal Reserve. The United States has seen a rise in wages and a decrease in the unemployment rate, both of which have fueled consumer spending.
Many analysts were concerned that consumer spending could slow down, potentially weakening U.S. markets; however, today's data report has proven many of them wrong. Almost every prediction of a potential recession has been rendered invalid, even in light of the pandemic, business shutdowns, rising interest rates, and high inflation. Many investors will now turn their attention to the upcoming election as well as some key reports from the Federal Reserve.
