US economy unexpectedly surges 4.3% in third quarter — its strongest growth in two years

Economic Growth - The US economy grew at an unexpectedly strong pace of 4.3% in the third quarter, marking the highest rate in two years [1][6] - This growth rate represents an increase from 3.8% in the previous quarter and surpassed analyst expectations of 3.2% [2] Consumer Spending - Vigorous consumer spending on services such as health care and products like recreational vehicles contributed significantly to the GDP surge [1] Employment and Retail Sales - The jobs market has faced challenges, with unemployment rising to 4.6% in November, the highest level in over four years [4] - Retail sales have slowed, even as upper-income households continue to spend, leading to weaker-than-expected earnings and outlooks from major businesses like Home Depot [4] Inflation and Price Trends - Inflation remains a concern, hovering above the Federal Reserve's 2% target, although consumer prices rose only 2.7% year-over-year in November, a smaller-than-expected increase [4][5] - The inflation data may be distorted due to challenges in data collection during the recent government shutdown [5] Tariff Impact - Businesses are uncertain about how much of the tariff costs to pass on to consumers, complicating the assessment of the full impact of tariff policies on prices [7] - The average annual rate of economic growth since President Trump's return to office is 2.5%, comparable to the 2.4% average recorded last year under former President Biden [7]