### U.S. Economy Grows at 2.8% Rate in Q3 Amid Robust Consumer Spending and Exports

WASHINGTON -- The U.S. economy continued its robust performance, growing at an annual rate of 2.8% from July through September, driven by strong consumer spending and a notable increase in exports. The Commerce Department confirmed this initial estimate of third-quarter growth on Wednesday.

The gross domestic product (GDP), reflecting the total output of goods and services in the economy, decelerated slightly from a 3% growth rate recorded in the April-June period. Despite this modest slowdown, the figures indicate a resilient American economy, sustaining growth above 2% in eight of the last nine quarters.

A crucial metric within the GDP data, which tracks the economy's core strength by focusing on consumer spending and private investment while excluding imports, exports, inventories, and government spending, showed a healthy increase. This measure rose at an impressive 3.2% annual rate in the third quarter, up from 2.7% in the previous quarter.

Consumer spending, a key driver comprising about 70% of U.S. economic activity, accelerated to a 3.5% annual rate, marking its fastest pace since the fourth quarter of 2023. Exports surged at a 7.5% rate, the highest in two years, significantly contributing to overall growth. However, both consumer spending and export growth were lower than initially estimated by the Commerce Department.

Conversely, business investment experienced a slowdown, primarily due to reduced expenditure in residential and nonresidential building projects, such as offices and warehouses. This was partially offset by a significant increase in spending on equipment.

As President-elect Donald Trump prepares to take office next month, he will inherit a generally strong economy. Current conditions include steady growth, an unemployment rate of 4.1%, and inflation standing at 2.6%, down from a peak of 9.1% in June 2022. The Federal Reserve, having noted the progress in curbing inflation, has already reduced its benchmark interest rate twice this year, with another cut anticipated in December.

Additionally, the report brought positive news on the inflation front. The personal consumption expenditures (PCE) index, the Federal Reserve's preferred inflation measure, grew at a modest 1.5% annual pace in the last quarter, down from 2.5% in the second quarter. Excluding volatile food and energy prices, core PCE inflation decreased to 2.1% from 2.8% in the preceding quarter.

Despite the steady economic growth, American voters, frustrated by persistent high prices, recently elected Donald Trump to the presidency. Trump has pledged significant changes to the nation's economic policies, including new import taxes on goods from countries such as China, Mexico, and Canada. Mainstream economists warn that such tariffs might exacerbate inflation, as U.S. importers typically pass the increased costs onto consumers.

The Commerce Department is scheduled to release its final report on third-quarter GDP on December 19.