US third quarter economic growth fastest since 2021 at 4.9%

The US economy grew at a strong 4.9% annual rate in the third quarter, surpassing expectations and marking the fastest pace in over two years. Consumer spending was the primary driver of the growth, despite higher prices and rising interest rates. However, experts predict a slowdown in the current quarter and into 2024 due to increasing borrowing rates and the Federal Reserve’s efforts to curb inflation. While consumers have been able to spend due to rising wages and low interest rates, factors such as student loan repayments and a sluggish housing market may dampen spending in the coming months.