A report released by the Department of Commerce on Thursday indicates that the U.S. economy expanded by 3.4% over the annual period spanning the third quarter of the current year, which corresponds to July through September. This growth is attributed to consumers' ability to withstand high prices resulting from inflation, as well as significant investments in artificial intelligence.
Consumer spending rose by 3.8% during the period, with domestic output reaching 2.2% of total production. Business investment also made a significant contribution to economic growth in the final quarter.
According to a recent report from the Department of Commerce, the surge in investment in artificial intelligence has had a significant impact on economic growth. Specifically, the report highlights a substantial increase in investment in key areas, including a 37.4% boost in information processing equipment, a 9.6% rise in software, and a 7.5% increase in research and development.
Investment in housing declined significantly due to rising mortgage rates, which peaked at 7% in recent months, resulting in a 3.3% drop in investment in this sector.
The US economy continues to perform well despite significant challenges posed by rapidly increasing energy costs, primarily driven by the ongoing conflict in the Middle East and exacerbated by high tariffs, which have had a notable impact on household budgets throughout the year.
