U.S. Economy Grew at 2.8% Rate in Third Quarter

Published On Oct 30, 2024, 8:33 AM

The U.S. economy grew at a 2.8% annual rate in Q3 2024, driven by strong consumer spending, which increased at a 3.7% rate. Despite earlier concerns about a slowdown in spending due to a weakening job market and dwindling household savings, recent data indicates income and savings are actually stronger. Economists expect growth to slow in Q4 due to various factors, but overall, the economy remains resilient with cooling inflation and confidence among consumers. Future economic prospects will also depend on political outcomes after upcoming elections.

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Stock Forecasts

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Positive

With robust consumer spending and cooling inflation, consumer discretionary sectors may see strength. Companies in retail and consumer services sectors are likely to benefit from continued spending patterns. Additionally, sectors involved in infrastructure and green energy may also see growth.

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Negative

While the economy shows strength, the potential for growth to slow in Q4 could impact sectors dependent on business investments, particularly those related to industrials. Caution should be exercised as unexpected economic shifts could negatively affect performance.

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