Powered by strong consumer spending, the U.S. economy grew at the fastest pace in two years from July through September, the government said Thursday in a slight upgrade of its first estimate.
America’s gross domestic product—the nation’s output of goods and services—rose at a 4.4% annual pace in the third quarter, the Commerce Department reported Thursday, up from 3.8% in the April-June quarter and from the 4.3% growth the department initially estimated.
Consumer spending, which accounts for 70% of U.S. GDP, grew at a healthy 3.5% pace. Spending on services such as health care rose 3.6% versus a 3% uptick on goods spending, including an increase of just 1.6% on so-called durable goods, which are meant to last at least three years. A surge in exports and a drop in imports also contributed to robust third-quarter growth.
Business investment (excluding homebuilding) rose at a 3.2% clip, partly reflecting bets on artificial intelligence.
