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AI-Related Investment, Consumers Likely Boosted US Economic Growth in Third Quarter
Reuters economists forecast 3.2% annualized growth as AI-related spending and consumer demand offset a record trade drag.
- The Bureau of Economic Analysis reported on Thursday that GDP increased at a 3.4% annual rate in the third quarter, accelerating from the 2.2% rate in the April-June period and marking the fastest growth in a year.
- Resilient consumer spending and AI-driven business investment fueled the acceleration, more than offsetting higher oil prices stemming from the conflict in the Middle East. AI-related investment remains a key economic pillar despite some downside risks.
- Despite a widening trade deficit that subtracted at least 4 percent from growth, business spending on equipment and data center construction bolstered the economy. Economists noted that underlying momentum remains quite strong.
- With midterm elections for Congress approaching on Nov 3, data reveals a disconnect between economic growth and public sentiment. Americans remain frustrated by inflation, with consumer prices up 3.5% and gasoline prices exceeding $4.
- The Federal Reserve left benchmark interest rates in the 3.75% to 4 percent range on Wednesday, acknowledging inflation remains elevated. Economists expect the central bank to raise rates in December to manage growth exceeding non-inflationary levels.
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US Economic Growth Seen Accelerating as AI Investment and Consumer Spending Drive Expansion
The US economy was forecast to grow at an annualized rate of 3.2% in the third quarter, fueled by consumer spending and artificial intelligence investment. ... The post US Economic Growth Seen Accelerating as AI Investment and Consumer Spending Drive Expansion first appeared on [your]NEWS.
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Leaning Left1Leaning Right3Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
13%
C 50%
R 37%
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