U.S. economy grows at 3.1% pace in third quarter, an upgrade from previous estimate
Published On Dec 19, 2024, 8:35 AM
The U.S. economy grew at an annual rate of 3.1% in the third quarter, up from a previous estimate. Growth was supported by strong consumer spending and a significant increase in exports. Consumer spending rose by 3.7%, while exports increased by 9.6%. Business investment saw minor growth at 0.8%, but there were notable increases in equipment spending and government spending, particularly in defense. Despite the positive economic indicators, public sentiment remains frustrated due to high prices, and political changes are on the horizon with a return of Republican leadership.
Stock Forecasts
XLY
Positive
The continuous growth in consumer spending and exports suggests strong domestic demand, which is favorable for companies dependent on consumer consumption. This economic resilience may positively impact sectors like retail and travel.
LMT
Positive
Defense spending is also on the rise, indicating more stability and potential growth for defense contractors and suppliers. Companies operating within this sector may see a positive impact.
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