The threat of an economic downturn in the United States seems to have largely receded. The Federal Reserve’s decision to increase interest rates has not had a significant impact on the country’s economy. During the current quarter, from July to September, the economy has shown a growth rate of 4.9%, marking the fastest pace in the past two years. This is more than the 2.1% growth observed in the preceding quarter from April to June.
Data from the U.S. Department of Commerce indicates that the output of goods and services in the country suggests that consumers have been spending vigorously, from cars to dining at restaurants. Despite a rapid rise in inflation rates, local residents are actively engaging in activities such as traveling, attending sports events, and purchasing concert tickets.
However, experts believe that a significant slowdown in the U.S. economy may be on the horizon from the third quarter, spanning from October to December, up to the year 2024. Increased interest rates could potentially lead to cutbacks in both businesses and individual spending.
Nevertheless, the 4.9% GDP figure for the third quarter in the United States has come at a time when the Federal Reserve is making efforts to curb inflation by slowing down the pace of the economy. The Federal Reserve has raised its benchmark interest rates to 5.4%, the highest in 22 years. While many Americans are spending robustly, there are also those who have been grappling with relentless inflation over the past two years.
Despite the impressive GDP figures for the third quarter, U.S. stock markets are trading with significant declines. The Dow Jones has fallen by 158 points to 32,877, and the Nasdaq is down by 90 points, trading at 12,730.