US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment
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WASHINGTON (AP) -- The U.S. economy grew at a healthy 3.4% annual pace from July through September, accelerating from the second quarter on strong consumer spending and investment in artificial intelligence.
The expansion in third-quarter gross domestic product - the nation’s output of goods and services - was faster than the 2.2% growth registered from April through June, the Commerce Department said Thursday. Consumer spending rose at a brisk 3.8% clip in the third quarter, and business investment was up sharply, reflecting the AI boom.
The American economy - by far, the world’s biggest - has proven resilient in the face of higher energy prices caused by the fighting with Iran.
Economists had expected GDP to grow 3% in the third quarter, according to a survey of forecasters by the data firm FactSet.
Thursday’s report was the first of three Commerce Department estimates of third-quarter GDP growth.