US GDP expanded by 2.8% in third quarter

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The US economy grew by an annualised rate of 2.8 per cent in the third quarter, powered by strong consumer spending and business investment.

The latest data on Wednesday from the Bureau of Economic Analysis showed GDP fell slightly short of economists’ estimates for a 3 per cent expansion and was just shy of the 3 per cent rate in the previous quarter.

The data, which covers the period between July and September, confirms the strength of the world’s largest economy, which has repeatedly defied expectations of a recession despite the Federal Reserve holding interest rates high to stamp out inflation.

The US central bank cut rates by a larger-than-usual half-point last month — its first reduction since 2020 — leaving the benchmark at 4.75-5 per cent.

This is a developing story