The US economy is growing strongly, driven by business and household consumer spending

The U.S. economy grew strongly in the third quarter, with households and businesses "standing tall" in the face of global headwinds and uncertainty ahead of the November election. Preliminary U.S. data released on Wednesday showed that U.S. real GDP rose 2.8 percent in the third quarter at an annualized quarterly rate, following a 3 percent increase in the previous quarter. Consumer spending, which accounts for the largest share of economic activity, rose 3.7 percent, the largest increase since early 2023. Meanwhile, data from the Bureau of Economic Analysis showed that the U.S. core PCE price index rose 2.2 percent in the third quarter at an annualized quarterly rate, roughly in line with the Federal Reserve's target.