The US Economy Grew 2.8% in the Third Quarter

Per the Department of Commerce, real gross domestic product (GDP) expanded by an annualized rate of 2.8% in the most recent quarter. The rate was slightly lower than the 3% increase in the April-June period.

Despite inflation fears and higher borrowing costs, consumer spending went up 3.7% in the quarter. Consumer prices increased 1.5% annualized from the previous quarter and jumped 2.3% compared to a year ago. In the public sector, U.S. government expenditures surged 9.7%, with defense spending up nearly 15%.

Business investments in both equipment and intellectual property increased during the quarter. However, businesses shied away from other investments like buying new nonresidential buildings.

“The increase in real GDP primarily reflected increases in consumer spending, exports, and federal government spending,” the news release said. 

The data released by the Commerce Department is just preliminary. As more information comes in, the information will likely go through some revisions, either upward or downward.

Job Market Data

Earlier this week, the Labor Department reported that unfilled jobs fell to 7.4 million last month compared to 7.86 million in August. Most of the openings reported were positions related to healthcare, social assistance, and the government.

The number of hires went from 5.44 million to 5.56 million by the end of September. Meanwhile, layoffs also increased to 1.83 million, up from 1.67 million.

“Decreasing or subdued job openings, quits and hiring rates last month all point to a cooler labor market compared to one year ago,” stated NerdWallet Senior Economist Elizabeth Renter, per CNN. “Employers aren’t bringing many folks on, and workers aren’t super eager to leave the comforts of their existing roles in the current environment.”

On Friday, the government will release more job data, which is expected to reveal an increase of 120,000 jobs in October. Yet, the ongoing strike at Boeing as well as the effects of Hurricanes Helene and Milton could distort the initial figure, which will ultimately need adjusting as more data is analyzed.