Economic growth increased at a slower pace than expected during the third quarter of 2024, rising 2.8% after climbing a revised 3% during the second quarter of 2024, according to CNBC. Economists had been expecting growth of 3.1%.
Strong consumer spending and government spending reportedly contributed to the gross domestic product increase in the third quarter.
Consumer spending rose 3.7% during the third quarter, which is the strongest performance since the first quarter of 2023. Federal government spending jumped 9.7%, boosted by a 14.9% rise in defense outlays.
An 11.2% jump in imports slowed growth and offset an 8.9% increase in exports.
The Federal Reserve reportedly is poised to further lower interest rates despite the seemingly solid economy and inflation that remains above target.
