The US economy grew faster than expected in the third quarter, with GDP growing at an annual rate of 4.3%, beating market forecasts and showing strong growth momentum.
The growth was driven by resilient consumer spending, as personal consumption rose to an annual rate of 3.5%, reflecting the strength of domestic demand despite the high interest rate environment.
At the same time, inflationary pressures have risen again. The GDP price index and core PCE inflation both recorded increases, indicating that underlying price pressures are strengthening along with economic growth.
However, signs of weakness are emerging in the manufacturing sector, with durable goods orders falling more than expected. This suggests that demand for investment and capital goods is moderating.
The combination of strong growth and rising price pressures has the potential to reinforce monetary policymakers' cautious stance on policy easing in the near term.
