US Economy Reports 2.8% Growth Amid Election Tension
ICARO Media Group
**US Economy Grows at 2.8% Amidst Election Turmoil**
The US economy showed solid growth in the three months leading up to September, expanding at an annual rate of 2.8%, according to the Commerce Department. Although this marks a slight dip from the previous quarter's 3% growth rate, the latest figures still position the US as one of the best-performing major economies this year. The primary driver behind this growth was a notable increase in consumer spending compared to earlier months.
This economic report comes just days before Americans head to the polls for a fiercely contested presidential election, where economic concerns have consistently topped voter priorities. Despite the encouraging GDP figures, it remains uncertain whether these numbers will alleviate widespread economic anxiety. Public sentiment around the economy has remained largely pessimistic, significantly influenced by a roughly 21% rise in prices over the last four years.
According to a recent poll by the Associated Press-NORC Center for Public Affairs Research, 62% of Americans view the overall state of the economy as "bad." This pervasive sense of economic dissatisfaction could be challenging for Kamala Harris and the Democrats, the current party in the White House. On the other hand, Donald Trump emphasizes his economic achievements during his tenure, portraying that period as more prosperous.
Despite the prominence of the economy as an election issue, opinions have increasingly become polarized along partisan lines. Marjorie Connelly, a senior fellow at the AP-NORC Center, noted that people's economic views are significantly influenced by their political affiliations. The AP-NORC poll highlighted this divide, with 61% of Democrats considering the economy to be in good shape, compared to just 13% of Republicans and 28% of independents. Voters are similarly split on whether they trust Trump or Harris more on key economic issues such as the cost of groceries, gas, jobs, and unemployment.
Even though the economy ranks high on the list of voter concerns, other issues may ultimately prove more decisive on Election Day. The focus on the economy in polls may stem from it being one of the few areas where there is some bipartisan agreement on its importance, according to Connelly.
However, the hard economic data shows positive trends. Petrol prices have fallen, grocery prices are stabilizing, and wages have been growing faster than prices for the past year, somewhat cushioning the higher living costs for many families. Furthermore, the Federal Reserve's decision to cut interest rates in September for the first time in four years reflects growing confidence that inflation is under control. September also saw a significant rebound in job growth, alleviating fears of an imminent economic downturn.
The Conference Board recently reported a rise in its consumer sentiment index in October, citing increased job availability and optimism about future business prospects and income. The proportion of people worried about an economic recession has also dropped to its lowest level since mid-2022. Samuel Tombs, chief US economist at Pantheon Macroeconomics, speculated that this improvement might be driven by rising optimism among Republicans confident in a Trump victory. Dana Peterson, chief economist for The Conference Board, attributed the positive sentiment to improving economic fundamentals.
"Data shows third-quarter GDP was strong, the job market is robust, and inflation is slowing," Peterson stated. "After several years of volatility, consumers seem to be acknowledging that inflation is not as severe, and their economic concerns are easing."
As the election approaches, the interplay between economic data and political sentiments will continue to unfold, influencing voter decisions in ways that are not yet fully understood.