US economy grows 3.4% in third quarter on spending and AI

Summarised from 2 outlets · Updated 29 Oct, 13:15 · Archive

The US economy grew at 3.4% annual pace from July to September, accelerated by consumer spending and artificial intelligence investment.

The US economy expanded at a 3.4% annual pace from July through September, accelerating from the previous quarter's 2.2% growth rate, according to the Commerce Department. The growth outpaced economist expectations of 3% expansion.

Consumer spending grew at a brisk 3.8% rate, while business investment rose sharply. Investment excluding housing climbed 12.7% in the third quarter, driven largely by artificial intelligence. Information processing equipment investment surged 37.4%, software investment rose 9.6% and research and development spending increased 7.5%.

Housing investment declined 3.3%, marking the sixth decline in the last seven quarters as higher mortgage rates dampened activity in the sector. The American economy has remained resilient despite elevated energy prices resulting from fighting with Iran.

Thursday's figures represent the Commerce Department's first estimate of third-quarter gross domestic product growth. Two further estimates are expected.

How it is being reported

• US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investmentThe 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.News4Jax · 29 Oct, 12:32
• US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investmentThe 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.Clickorlando · 29 Oct, 12:32

In this story: United States · Commerce Department · FactSet · Iran

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log