Consumer Spending Boosts US Economic Growth As Confidence Dips

Economic Growth - U.S. gross domestic product (GDP) increased at a seasonal and inflation-adjusted annual rate of 4.3% in Q3, marking the highest growth rate in two years, driven by strong consumer spending, exports, and government spending, despite a decrease in investment [2][3] Consumer Spending and Confidence - Consumer spending remains robust, particularly on healthcare and recreational vehicles, but consumer confidence has declined by 3.8 points in December, marking the fifth consecutive drop across various demographics [3][4] - The Conference Board's findings indicate that while consumers are optimistic about spending on big-ticket items like homes and cars in the coming months, overall consumer sentiment is pessimistic due to concerns over prices, inflation, and political factors [4][5] Inflation and Financial Pressure - Although price growth is slowing, consumers continue to face higher prices on essential goods, leading to a disconnect between perceived inflation and actual spending power, which affects spending decisions and brand loyalty [6] - Different age groups experience financial difficulties in varying ways, with older Americans on fixed incomes feeling the pressure from rising costs of essentials, while younger adults face challenges from unstable income and credit card debt [7]