With days to go before the midterms, data shows the U.S. economy is doing well
The U.S. economy picked up speed over the summer. Gross domestic product grew at a 3.4% annual rate from July through September, according to Commerce Department data released Thursday, compared with 2.2% in the previous quarter.
Heavy investment by AI companies building data centers was a big driver, along with consumer spending, much of it from higher-income households better able to cope with stubborn inflation.
The data arrives just days before the midterm elections, when many Americans say they feel gloomy about the economy. Inflation is raising the cost of everyday necessities and the conflict with Iran has pushed up gasoline prices. A separate Commerce report showed prices up 3.6% in September from a year earlier, above the Fed's 2% target, and the personal saving rate slipping to 3.8% from 4.1% in August.
Key points
- Q3 GDP: 3.4% annual rate (Q2: 2.2%)
- Drivers: AI investment and consumer spending
Summary written by Readthrough from the original article. The full story, with photos and any updates, is at NPR Business.
