U.S. Economy Surges Beyond Expectations in Q3 - Reuters
Date: 2023-11-29 Author: Dima Zakharov Categories: WORLD, ECONOMY
In the third quarter, the U.S. economy outpaced initial expectations, fueled by businesses constructing more warehouses and expanding machinery capabilities, as reported by Reuters. The Gross Domestic Product (GDP) for this period rose to 5.2% in annual calculation, surpassing the earlier forecast of 4.9%. Economists had not predicted figures exceeding 5.0%.
This upward trajectory reflects heightened investments in business infrastructure development and medical facilities. Investments in residential construction also increased due to single-family home projects, putting an end to a nine-quarter contraction in this sector. Additionally, private investments in inventories exceeded earlier expectations.
However, the growth in consumer spending, which constitutes over two-thirds of the U.S. economic activity, demonstrated a modest increase of 3.6%, lower than anticipated.
Over the past two decades, the U.S. economy has accounted for over 20% of global GDP growth. According to the latest IMF data, unlike other major world economies, the American economy has not only recovered to pre-pandemic levels but continues to grow.
This upward trajectory reflects heightened investments in business infrastructure development and medical facilities. Investments in residential construction also increased due to single-family home projects, putting an end to a nine-quarter contraction in this sector. Additionally, private investments in inventories exceeded earlier expectations.
However, the growth in consumer spending, which constitutes over two-thirds of the U.S. economic activity, demonstrated a modest increase of 3.6%, lower than anticipated.
Over the past two decades, the U.S. economy has accounted for over 20% of global GDP growth. According to the latest IMF data, unlike other major world economies, the American economy has not only recovered to pre-pandemic levels but continues to grow.
