The U.S. economy grew an annualized 4.9 percent in real terms from July through September, expanding at its fastest pace in about two years, on the back of robust consumer spending despite rising interest rates, the Commerce Department said Thursday.
The initial estimate of gross domestic product for the third quarter grew far more than the market forecast of 4.3 percent, with the rate jumping from 2.1 percent in the second quarter. The latest GDP growth rate is the highest since the fourth quarter of 2021.
The world's largest economy remains bullish, registering its fifth straight quarter of expansion, although the Federal Reserve has raised interest rates repeatedly in an attempt to cool inflation.
Financial market analysts expect the Fed to keep its benchmark interest rate unchanged at its upcoming two-day policy meeting ending next Wednesday.
But with the latest data the U.S. central bank could surprise the market.
In the third quarter, the department said private consumption, which accounts for two-thirds of the economy, underpinned by tight labor conditions and wage gains, rose 4.0 percent.
That compares with 0.8 percent growth in the April-June period. Residential investment rose 3.9 percent, moving out of a downtrend that began in the second quarter of 2021.
Exports and imports rose 6.2 percent and 5.7 percent, respectively.
