U.S. economy grew at a 2.8% pace in the third quarter, less than expected

In the quarter of this year the American economy showed a good performance, with a slight letdown, driven by robust consumer spending that has surpassed predictions of a downturn.

According to a report from the Commerce Department on Wednesday that adjusts for inflation and seasonality data shows that the gross domestic product rose by 2 point eight percent on an annualized basis in the months from July, to September.

Economists surveyed by Dow Jones had anticipated a growth of 3%. The economy picked up speed expanding at a 3 percent rate, in the quarter.

The report states that the U.S.s growth has persisted with high interest rates and ongoing concerns that the combination of fiscal and monetary support that helped the economy during the Covid crisis might not be sufficient to maintain growth.

Nevertheless the strong spending by consumers. Making up a portion of overall economic activity. Has played a crucial role, in sustaining the economys momentum during this period.

Consumer spending rose by 3. The department also noted that federal government spending increased by 14 outlays, for defense surged by 14.

However the growth number was hindered by an 11. GDP, with imports rising by 8. Percent while exports increased by 8. Percent.

The markets didn't react much to the data since stock market futures indicated an opening, with varying results and Treasury yields were also showing trends.

The new launch coincides with the Federal Reserves plan to reduce interest rates more despite the robust economy and inflation that is still higher than desired but not as high as it was, in mid year 2022.

It is widely anticipated by the markets that the Federal Reserve will reduce its short term borrowing rate by another quarter percentage point at the end of their two day meeting, on November 7th.

Great news regarding inflation! The personal consumption expenditures price index went up by 1 0 percent for the quarter according to the Feds measure of inflation. Falling below their goal of 20 and significantly lower than the 25 increase in Q two However when excluding food and energy core PCE saw a rise of point sixty two percent, above two percent

Consumers have been relying on their savings and credit to support their spending habits with the personal savings rate slowing down in the quarter to 4.. Percent, a decrease, from the previously revised 5.. Percent level.