Gross domestic product accelerated alongside substantial commercial spending on advanced technology models and data centers, even as foreign trade imbalances shaved off overall momentum. At the same time, the Federal Reserve's primary inflation gauge picked up speed to hit 3.6 percent in September. Much of this consumer burden stemmed from international conflict in the Middle East, which drove average regular fuel costs up by 42 percent according to AAA motor club tracking.
Key points
Heavy corporate capital expenditures in artificial intelligence data centers and computin…: Heavy corporate capital expenditures in artificial intelligence data centers and computing models played a major role in powering broad national growth.
Working-class households continue to face disproportionate financial pressure from tariff…: Working-class households continue to face disproportionate financial pressure from tariffs and elevated energy prices despite resilient overall economic output.
The contrasting combination of brisk growth and stubborn inflation creates a complex poli…: The contrasting combination of brisk growth and stubborn inflation creates a complex political backdrop as Democrats battle Republicans for congressional control.
Sources checked by our analysis pipeline: 1
WASHINGTON: The United States posted strong economic growth in the third quarter, but the Fed's preferred inflation gauge also accelerated, the Commerce Department said on Thursday (Oct 29), in a mixed economic bag for US President Donald Trump ahead of key midterm polls next week.
Real GDP increased at an annual rate of 3.4 per cent in the third quarter, the department's Bureau of Economic Analysis (BEA) said in a statement, beating market expectations.
"The contributors to the increase in real GDP in the third quarter were increases in investment, consumer spending, and government spending that were partly offset by a decrease in exports," the BEA said in a statement.
The US Federal Reserve's preferred gauge for inflation - the Personal Consumption Expenditures (PCE) price index - rose by 3.6 per cent year-on-year in September, an increase from the previous month.
Trump's handling of the economy is a key issue for voters heading into midterm elections on Tuesday, where Democrats are seeking to wrest control of both houses of Congress from the president's Republican Party.
Equity markets in Madrid faced downward pressure by the end of the trading session. Investors saw the main benchmark pull back amid modest headwinds across the exchange. The close reflects mild losses across equities during regular market activity.