The pace of U.S. economic growth slowed over the summer but continued two years of expansion, data showed on Wednesday, days before millions of voters will decide whether Kamala Harris or Donald Trump is best suited to lead it. economic development.
U.S. gross domestic product (GDP) – a broad measure of economic health – grew 2.8% in the third quarter, below economists’ expectations of 3.1% and below the 3% figure in the previous quarter. The growth was driven primarily by consumer spending, exports and federal government spending
U.S. policymakers are scrambling to bring inflation down from levels last seen two years ago. The Federal Reserve will quickly raise interest rates to keep prices down, a move that economists fear could tip the world’s largest economy into recession. These warnings did not materialize.
U.S. economic growth has been surprisingly resilient under Joe Biden’s leadership, falling in just one quarter (the first quarter of 2022) as the shockwaves of the Covid-19 pandemic continue to roil the global economy.
But many Americans still don’t feel it. According to a Harris Poll conducted exclusively for The Guardian last month, almost half of people incorrectly believe the United States is in recession. Years of price increases have continued to take a toll.
Even as U.S. employers have added millions of jobs in recent years, Trump has sought to portray the Biden administration as a “destroyer” of jobs. Biden’s Vice President Harris acknowledged that the cost of living remains “too high” for many people and pledged action to help.
The latest GDP report comes ahead of closely watched October employment data on Friday. Economists expect the economy to add about 125,000 new jobs this month, the last report before the election. That number would be a sharp drop from the 250,000 jobs added in September, when hiring unexpectedly accelerated, and likely reflects the strike at Boeing and the impact of Hurricanes Helen and Milton.