The US economy grew at a faster-than-expected pace in the third quarter, with a second reading for gross domestic product (GDP) in the period showing an annualized expansion rate of 2.9% versus a previous 2.6%, the Commerce Department reported on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 30th November, 2022) The US economy grew at a faster-than-expected pace in the third quarter, with a second reading for gross domestic product (GDP) in the period showing an annualized expansion rate of 2.9% versus a previous 2.6%, the Commerce Department reported on Wednesday.
For the first quarter, GDP contracted by 1.6%, while for the second quarter, it grew by a modest 0.6%.
Economists polled by US media had anticipated a third-quarter GDP growth of 2.8% in the second reading for the quarter. The Labor Department issues three GDP readings for each quarter.
"The details are positive, especially the consumer which is holding up," economist Adam Button said, referring to the reading issued on Wednesday.
The data brings relief to economists worried about the consumption part of the economy, which makes up about 70% of GDP, and which had hinted at a slowdown as of late.
US consumer confidence fell for a second month in a row in November, suggesting more Americans were worried about the prospect of recession, economic analysis and forecasting group The Conference Board said Tuesday.
The board's Consumer Confidence Index stood at 100.2 for this month, down from 102.2 in October. Its Present Situation Index based on consumers' assessment of current business and labor market conditions decreased to 137.4 from 138.7 last month. The Expectations Index based on consumers' short-term outlook for income, business, and labor market conditions declined to 75.4 from 77.9.
"Consumer confidence declined again in November, most likely prompted by the recent rise in gas prices," Lynn Franco, senior director of economic indicators at The Conference Board, said, referring to pump prices of fuel which rose from October after dropping in four previous months. The Expectations Index reading of below 80 "suggests the likelihood of a recession remains elevated", Franco added.
