US economy grew at fastest pace in 2 years in third quarter, fueled by consumer spending

Economic Growth - The U.S. economy grew at an annualized rate of 4.4% in Q3, surpassing economists' expectations of 3.3% [1][2] - This growth rate represents the fastest increase in two years, following a contraction of 0.6% in Q1 and a growth of 3.8% in Q2 [2] Consumer Spending and Investment - Strong consumer spending, along with increases in exports, government spending, and investment, contributed to the GDP rise [4][5] - Real final sales to private domestic purchasers rose by 2.9% in Q3, indicating robust consumer activity and investment [6] Trade Dynamics - The report noted a decline in imports and an increase in exports during Q3, reflecting shifts in trade dynamics [8] - The impact of a government shutdown on data collection was acknowledged, which delayed the initial GDP estimate [8] Economic Insights - The strong GDP reading was attributed to resilient consumer spending, robust investment in equipment and AI, and increased federal government outlays [9] - The economy is described as adjusting to various economic pressures rather than overheating or stalling [9] AI and Technology Investment - Investment in AI and data centers played a significant role in driving GDP growth, highlighting the importance of technology in the current economic landscape [10]