U.S. Economy Expanded 2.6% In 3rd Quarter

Some good economic news this morning: the U.S. economy grew at an annual rate of 2.6 percent in the third quarter.

Some good economic news this morning: the U.S. economy grew at an annual rate of 2.6 percent in the third quarter. This is the first increase in 2022 after six months of contraction.

From the Washington Post:

The report on gross domestic product, released Thursday by the Bureau of Economic Analysis, revealed a more upbeat snapshot of the economy less than two weeks before the midterm elections, even as high inflation has proved a persistent problem for Democrats.

Even though consumers bought fewer goods, they continued to spend on health care, which helped lift the reading on GDP, which sums up goods and services produced in the U.S. economy. An increase in government spending at the federal, state and local levels also contributed to the gains.

The biggest contributor to the growth came from a narrowing trade deficit as U.S. retailers imported fewer items and exported more goods and services.

The Dow Jones Industrial Average closed nearly 200 points higher on the news.

Economists say the report hints that the worst of inflation may be behind us.

Read the full report here.