US GDP Data: The threat of economic recession in America seems to be completely averted now. The Fed’s decision to slow down the economy by increasing interest rates is not having any effect on the American economy. The economy has grown at a pace of 4.9 percent during the July to September quarter of the current year.
The US Commerce Department has released GDP data, according to which the economy has grown at the fastest pace in two years during the July to September quarter. The GDP data of 4.9 percent during the July-September quarter is higher than 2.1 percent during the previous April to June quarter.
The output of goods and services of the American economy is indicating that consumers have spent heavily on everything from cars to food and drinks in restaurants. Despite the sharp rise in inflation, local people are spending heavily on everything from sightseeing to sports events and concert tickets.
However, experts believe that there may be a major slowdown in the American economy from the October-December quarter to 2024. Due to increase in interest rates, businesses and common people can cut down their expenses.
However, America’s GDP figure of 4.9 percent in the third quarter has come when the Federal Reserve is making every possible effort to control inflation by controlling the pace of the economy. The Federal Reserve increased its benchmark interest rates to 5.4 percent, which is the highest in 22 years. On one hand, many Americans are spending lavishly, while on the other hand, there are people who have been continuously troubled by back-breaking inflation for the last two years.
Despite the excellent GDP figures for the third quarter, the American stock market is trading with a big decline. Dow Jones is trading 158 points down at 32,877 while Nasdaq is down 90 points at 12,730.
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