The US economy is growing faster than expected
The US economy grew faster than previously thought in the third quarter. The figure has been revised upwards due to higher consumer spending, particularly in the hospitality sector and services such as travel. Companies in the US also invested heavily.
The new figures show growth of 3.2 percent year-on-year, which corresponds to 0.8 percent growth compared to the second quarter. The previous estimate put growth in the world’s largest economy at 2.9 percent year-on-year.
The new revision reflects that the US economy is in good shape despite high inflation. A key inflation indicator also rose. This will support the Federal Reserve in its announced policy of further interest rate hikes.
The Federal Reserve announced a small rate hike last week, but said it would need to raise rates further than most economists thought to bring inflation under control.
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