US GDP Grows 2.8% in Q3, Driven by Spending and Exports: According to the Commerce Department, the US economy grew at a 2.8% annual rate in Q3 2024, supported by solid consumer spending and a surge in exports. It marks a slight slowdown from Q2’s 3% growth but reflects nonstop economic flexibility, with GDP exceeding 2% in the past nine quarters.
Consumer Spending and Exports Lead Growth
Consumer expenditure, which comprises 70% of economic activity, grew at a 3.5% pace in Q3, up from 2.8% in Q2. Exports jumped 7.5%, their strongest rise in two years, though both categories grew slightly less than originally estimated.
Also Read: Asia-Pacific Markets Mixed Amid China Profits and Australia Inflation Data
Business Investment Slows
Business investment slowed, particularly in housing and non-residential buildings like offices. However, spending on equipment rushed, offsetting some declines.
Economic Conditions Under Trump
As President-elect Trump prepares to take office in January, he inherits a usually healthy economy. Unemployment is low at 4.1%, and the rise, though down from its June 2022 peak of 9.1%, remains somewhat above the Federal Reserve’s 2% target at 2.6%. The Fed has responded by cutting interest rates twice recently, with a potential third cut expected in December.
Read More: Bitcoin Surges Past $97,000 Amid Optimism Over Donald Trump Pro-Crypto Stance
Public Concerns and Policy Shifts
Despite steady growth, Americans still need to improve on high prices, with costs up 20% since early 2021. Re-elected this month, Trump has assured a financial overhaul, including tariffs on imports from China, Mexico, and Canada. Economic experts warn that such tariffs could increase prices, as importers typically pass higher prices to consumers.
The US economy shows flexibility with solid growth, low unemployment, and easing inflation. However, the public’s frustration with determined price pressures highlights the challenges ahead for the incoming management.
