US economic growth likely remained strong in third quarter

Economic Growth - The U.S. economy likely grew at a 3.3% annualized rate in the third quarter, supported by solid consumer spending and business investment [5] - The anticipated acceleration in consumer spending was driven by a rush to purchase electric vehicles before the expiration of tax credits on September 30 [2][8] Consumer Spending - Growth in consumer spending, which constitutes over two-thirds of U.S. economic activity, is expected to have accelerated from a 2.5% pace in the second quarter [8] - Higher-income households are primarily driving consumer spending, benefiting from a stock market boom that has increased household wealth [3] Business Investment - Big businesses have largely managed to withstand the impact of tariffs imposed by the Trump administration and are investing in artificial intelligence, which strengthens the economy [4] - In contrast, smaller businesses have faced significant challenges due to rising costs [4] Trade and Imports - The economy was supported by lower imports, which helped to reduce the trade deficit [2] Economic Outlook - The recent government shutdown is projected to reduce GDP by 1.0 to 2.0 percentage points in the fourth quarter, with an estimated $7 billion to $14 billion of this decline not being recovered [7]