US economy still strong in final preelection report
It grew at a solid 2.8% annual rate from July through September
What happened
The U.S. economy grew at a solid 2.8% annual rate from July through September, the Commerce Department said Wednesday, in the final major update on U.S. economic health before an election where voters rate the economy as their top issue. The GDP report showed "consumer spending increasing at its fastest pace in 1.5 years and inflation slowing sharply," Reuters said, reflecting a U.S. economy "continuing to defy forecasts of a recession and outperforming its global peers."
Who said what
"The U.S. economy is firing on all cylinders," RSM chief economist Joe Brusuelas said. Add the GDP growth to 4.1% unemployment and 2.4% inflation, and "if there is such a thing as a sweet spot for the economy we're basically in it right now," financial adviser and author Ben Carlson said on X. Still, "after years of high inflation," The New York Times said, "a large majority of voters rate the economy as only fair or poor."
The fact that prices are still higher than before the Covid-19 pandemic has "exasperated many Americans and posed a challenge" to Kamala Harris' electoral prospects, The Associated Press said, even as "most mainstream economists" assess that Donald Trump's "policy proposals, unlike Harris', would worsen inflation." Trump "remains the more trusted candidate in terms of handling the economy," the Times said, though Harris "has closed much of the gap."
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What next?
The Labor Department will release October's jobs numbers on Friday, though "analysts are discounting the report as the data are expected to be badly distorted by the temporary effects of two hurricanes and a strike by Boeing workers," the Los Angeles Times said.
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