(Washington) U.S. growth was stronger in the third quarter than initially reported, at 5.2% annualized, according to the Commerce Department’s second estimate, released Wednesday.
The first estimate showed gross domestic product (GDP) growth of 4.9%, a doubling from the previous quarter.
This revision is even stronger than expected, since analysts were expecting 5.0%, according to the MarketWatch consensus.
Growth was surprising with its strength in the third quarter. Households continued to spend, fueling the main engine of the American economy.
However, they had to devote a large part of their budget to expenses for electricity, health care and medicines, financial services and insurance.
They had also purchased computer equipment and traveled.
The United States favors growth at an annualized rate, that is to say the growth that would be achieved over the entire year at this rate.
Other advanced economies simply compare each quarter to the previous, resulting in 1.3% for the US in Q3 (compared to 1.2% reported in the first estimate).
But growth in the United States could slow down in 2024, due to measures taken by the American central bank (Fed) to curb high inflation.
Because the full effects of rate increases take time to be fully felt in the real economy.
Rates are currently in the 5.25-5.50% range, as of July. The Fed left them at this level during its September and November meetings, so as not to weigh too heavily on economic activity.
The next meeting will take place on December 12-13, and further holding of rates at this level is mostly expected at this point.
