US economy grew 5.2% in Q3/2023, highest in 2 years

Bisnis.com, Jakarta – Economy United States of America (US) grew faster than initial estimates or reached 5.2% in the third quarter of 2023.

Aggregation Reuters, On Thursday (30/11/2023), Uncle Sam’s country’s economic growth rate was the fastest in nearly two years. However, US economic growth has slowed as high borrowing costs have curbed hiring and public spending.

Then again, the pace of US economic growth seems to be overstating the health of the economy in the last quarter. Measured in terms of income, economic activity is increasing at a moderate pace.

However, a report from the Commerce Department on Wednesday (29/11) showed the economy continuing to grow from late 2022 despite lingering recession fears.

“Today’s report shows no signs of gloomy skies for the economy, but growth is cooling,” said Christopher Roepke, chief economist at FWDBONDS in New York.

He also said that the US economy will not improve significantly in the fourth quarter of 2023.

US Economic Data

According to the Commerce Department’s Bureau of Economic Analysis (BEA), gross domestic product (GDP) grew at an annualized rate of 5.2% in the third quarter of 2023. This realization increased from the previous rate of 4.9% (yoy), which registered the fastest expansion rate since the fourth quarter of 2021.

Economists are expected to revise GDP growth to a rate of 5.0%. The economy grew at a rate of 2.1% in the second quarter of 2023 and is expanding more than officials expected. Federal Reserve (Central Bank) The non-inflationary growth rate is around 1.8%.

The growth correction reflects increased business investment in structures, mostly warehouses and healthcare facilities. State and local government spending was also heavily revised.

Then, housing investment also picked up, helping to end nine straight quarters of contraction by building more single-family homes.

Private investment was also higher than previously estimated as wholesalers collected more machine tools. Inventory investment added 1.40 percentage points to GDP growth, compared to last month’s estimate of 1.32 percentage points.

However, growth in consumer spending, which accounts for more than two-thirds of US economic activity, slowed to a more solid 3.6%.

Then, downgraded from the previous estimate of 4.0%, likely due to spending cuts on financial services and insurance and used light trucks, which may have resulted from shortfalls caused by the recently concluded United Auto Workers strike.

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