US GDP rose 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, rising residential investment and government spending also contributed to economic growth. The United States also exported more.
Economic growth
The Bureau of Economic Analysis itself reports economic growth of 4.9 percent, but this is related to the annual method of measurement. The Census Bureau calculates growth as if it maintained the same pace for an entire year.
A recession in the United States has been expected for a long time. These concerns are due to large increases in interest rates by the US central bank, the umbrella organization for the Federal Reserve, to address high inflation. As a result, there is less money available in the economy. However, the economy performed better than expected again.
Wage increase
Americans’ wages have also risen faster than the rate of inflation in recent months, allowing families to spend more. Employers are increasing wages significantly because there are fewer employees available. Wage increases are declining slightly.
Therefore, experts take into account the slowdown in economic growth in the next quarter. Americans’ savings are slowly running out. Home builders are also becoming more cautious due to major global uncertainties, including economically.
