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Consumers are driving growth in the US economy

Consumers are driving growth in the US economy

US gross domestic product (GDP) grew 1.2 percent in the third quarter compared to the previous three months. In the second quarter, the world’s largest economy grew by 0.5 percent.

In addition to strong spending by American households, higher residential investment and government spending also contributed to economic growth. America also exported more.

Economic development

The Bureau of Economic Analysis reports economic growth of 4.9 percent, but this is about the annual measurement system. The Statistics Office calculates growth as if it had maintained the same pace throughout the year.

A recession in the US is long overdue. These concerns are due to aggressive interest rate hikes by the Federal Reserve, the US central bank’s umbrella body, to combat high inflation. As a result, less money is available in the economy. Nevertheless, the economy once again performed better than expected.

Salary increase

Americans’ wages have also risen faster than inflation in recent months, allowing families to spend more. With fewer workers, employers are raising wages dramatically. Wages are slightly lower.

Therefore, experts believe that the economic growth will decrease in the coming quarter. Americans’ savings are slowly draining. Homebuilders are also more cautious due to major global uncertainties, including the economy.

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