The U.S. Bureau of Economic Analysis said Thursday real GDP rose at a 3.4%
annualized rate in Q3 versus 2.2% in spring, the fastest pace in a year.
Personal consumption, which accounts for more than two-thirds of U.S. output,
grew 3.8%. Firms are sharply increasing AI-related investment while consumers
continue to spend despite elevated prices. Polls ahead of next week’s midterm
elections show voters frustrated by high living costs and blaming President
Trump and House Republicans, but preliminary data indicate consumers have not
pulled back, supporting growth while potentially adding upward pressure to
inflation as companies can more readily pass on price increases.
