Resilient US consumers drive strongest economic expansion in 2 years

Economic Growth - The U.S. economy expanded at a strong annual rate of 4.3% in the third quarter, up from 3.8% in the previous quarter, driven by growth in consumer spending, exports, and government spending [1] - Analysts had forecasted a growth rate of 3% for the period, indicating that the actual growth exceeded expectations [1] Inflation - Inflation remains above the Federal Reserve's target, with the personal consumption expenditures index (PCE) rising to a 2.8% annual pace in the last quarter, up from 2.1% in the second quarter [2] - Core PCE inflation, which excludes food and energy prices, increased to 2.9%, up from 2.6% in the previous quarter [2] Consumer Spending - Consumer spending, which constitutes about 70% of U.S. economic activity, increased at a 3.5% annual pace, up from 2.5% in the April-June period [3] - A category measuring the economy's underlying strength grew at a 3% annual rate, slightly up from 2.9% in the second quarter, including consumer spending and private investment [3] Trade Balance - Exports grew at an 8.8% rate, while imports fell by 4.7%, contributing positively to GDP growth [4] Labor Market - The labor market has shown signs of stagnation, with job creation averaging 35,000 per month since March, down from 71,000 in the previous year [6][7] - The unemployment rate rose to 4.6%, the highest since 2021, indicating potential challenges in the job market [6]