US GDP expands 3.4% in Q3 as consumers and AI fuel growth
### US Data Watch
Investors will track key US economic data releases, including September import prices, industrial production and capacity utilisation. Import prices are expected to rise 0.8%, compared with 0.7% previously, while industrial production is forecast to increase 0.4% month-on-month after remaining unchanged in the previous reading. Capacity utilisation is expected at 76.5%, slightly below the earlier 76.3% reading. The September monthly Treasury balance is also due, with the previous reading showing a deficit of $167 billion.
Strong household spending and surging investments in artificial intelligence infrastructure accelerated economic activity beyond expectations during the quarter, showcasing robust domestic demand. Discover how ongoing geopolitical tensions could impact growth forecasts for the upcoming quarter.
The U.S. economy expanded at an annualised rate of 3.4% in the July-September quarter, accelerating from 2.2% growth in the previous quarter, supported by strong household spending and continued investment in artificial intelligence-related projects.
According to data released by the Commerce Department on Thursday, consumer spending, the biggest driver of the U.S. economy, grew 3.8% during the quarter. Businesses also stepped up investments, particularly in technology and AI infrastructure, helping boost overall economic activity.
The growth rate exceeded economists’ expectations of 3%, highlighting the resilience of the world’s largest economy despite higher energy prices linked to tensions involving Iran.
The latest GDP figures mark the first of three official estimates for third-quarter economic growth and suggest that domestic demand remains strong even as global economic uncertainties persist.