U.S. Bureau of Economic Analysis (BEA) GDP report

U.S. GDP Grows 2.8%, Below Forecast; Consumer Spending Up 3.7%

Oct 31, 2024, 12:30 PM

U.S. Gross Domestic Product (GDP) grew at an annualized rate of 2.8% in the third quarter of 2024, slightly below economists' expectations of 3.0%. The growth was driven by robust consumer spending, which rose by 3.7%—the strongest increase since the first quarter of 2023—and accounts for about 70% of U.S. economic activity. Personal income grew by $221 billion during the quarter, fueled by rising wages and salaries. Business investment also contributed positively, with equipment investment increasing by 11.1%, while government spending further supported growth. However, the expansion was tempered by a widening trade deficit. Nominal GDP growth reached 4.7% annualized.