Tidbits
The American economy expanded at a healthy 2.8% annual pace in the third quarter of 2024 on strong consumer spending and a surge in exports, the government said Wednesday, leaving unchanged its initial estimate of GDP growth in the third quarter, which was 0.2% less growth than in the second quarter.
U.S. GDP expansion has topped 2% for 8 of the last 9 quarters. The Commerce Department will issue its final third quarter 2024 GDP report on Dec. 19.
Consumer spending, which accounts for about 70% of U.S. economic activity, accelerated to a 3.5% annual pace last quarter, up from 2.8% the previous quarter. Exports also contributed to the third quarter’s economic growth, increasing at a 7.5% rate, the most in two years.
Consumer credit card debt is a record $1.17 trillion, up 8.1% from a year ago.
Investment in housing and business buildings slowed substantially, but spending on equipment surged.
Annual inflation, which hit a 40 year high of 9.1% in June 2022, is down to 2.6% according to the Commerce Department. Retail prices are reported to be about 20% higher than they were in February 2021.