U.S. GDP Grows 3.4% Annualized in Third Quarter, Commerce Department Reports
The Commerce Department said the U.S. economy expanded at a 3.4% annualized rate in Q3, up from 2.2% in the prior quarter, while inflation remained above the Federal Reserve’s target.
The U.S. economy grew at an annualized 3.4% rate in the three months ending in September, according to data released by the Commerce Department on Thursday. The third-quarter pace marks an acceleration from the 2.2% annualized growth recorded in the previous quarter and exceeds the 2.5% rate seen in the first quarter of the year.
Fed Chair Kevin Warsh told reporters in Washington that economic activity is expanding at a strong pace, adding that domestic spending has remained resilient despite ongoing uncertainty tied to geopolitical developments.
Inflation continued to pressure policymakers, with prices rising 3.7% in September from a year earlier, keeping the rate more than a percentage point above the Fed’s 2% target. The central bank raised its policy rate by a quarter-point last month, the first increase in three years, and left rates unchanged at its most recent meeting while it monitors further data.
Hiring has kept pace, though at a slower rate, and unemployment remains low by historical standards. A surge in spending on artificial-intelligence hardware and data-center infrastructure has contributed to the recent economic gains.