US Q3 GDP growth steady at 2.8%

(Sharecast News) - America's economy expanded at a steady clip during the third quarter on the back of robust consumer outlays. According to preliminary figures from the Department of Commerce, in seasonally adjusted terms the country's gross domestic product grew at an annual rate of 2.8%.

That was only a tad less than the 3.0% clip observed over the three months ending in June and economists' forecasts calling for growth of 2.9%.

Household consumption increased by 3.7%, led by a 6% jump in spending on goods.

Investment in non-residential equipment meanwhile jumped by 11.1%.

Government spending rose by 5% on the back of a 14.9% surge in defence outlays.

Worth noting, a surge in imports as companies to front run port strikes meant that net foreign trade subtracted 0.56 percentage points from the rate of GDP growth.

For economists at ING, the latest data were consistent with continued steady growth.

They anticipated that GDP would expand at a 2.2% pace in the final three months of 2024, thanks to "strong momentum" in consumption.

A soft landing was envisaged for the following year with GDP growth seen clocking in at 1.5%.