The third quarter of the U.S. economy showed strong growth, with GDP expanding at an annualized rate of 2.8%. Consumer spending increased by 3.5%, which was the highest performance of the year.

However, initial estimates for household spending were slightly revised lower, indicating less spending on merchandise. Despite challenges such as inflation, borrowing costs, and political uncertainty, the economy remains resilient.

Business investment in research and development was revised upward, contributing to the positive economic outlook. Net exports had a negative impact on growth, subtracting 0.57 percentage points from the GDP figure. Inflationary pressures have stabilized, leading the Federal Reserve to lower interest rates and signal a shift in monetary policy.