U.S. Economy Surges Ahead Amid Consumer Spending Boost

The U.S. economy experienced solid growth in the third quarter, driven by robust consumer spending, with a GDP increase of 2.8%. Despite slight downward revisions in some areas, overall expansion surpassed Federal Reserve expectations. Profits varied across sectors but showed significant year-over-year gains.

The U.S. economy demonstrated robust growth in the third quarter, as confirmed by the Commerce Department on Wednesday. A steady rise in consumer spending contributed to a gross domestic product increase of an annualized 2.8%, maintaining the pace set in the previous quarter.

Despite some downward revisions in consumer spending, government spending, and exports, gains were bolstered by business investments and state government expenditures. Economists had anticipated these GDP figures would remain consistent based on Reuters' polling.

The third quarter also saw mixed performance in profit sectors, with non-financial institutions surging by $30.8 billion, while profits from overseas fell by $38.3 billion. Yet, overall economic activity remains above the Federal Reserve's target for non-inflationary growth.

(With inputs from agencies.)