Third-quarter U.S. GDP increases a better-than-expected 3.4% as September inflation accelerates
The personal consumption expenditures price index was projected to increase 0.5% in September for an annual rate of 3.7%, according to the Dow Jones consensus.
TL;DR
- Third-quarter U.S. GDP grew at a seasonally adjusted annualized pace of 3.4%, exceeding expectations.
- The personal consumption expenditures (PCE) price index increased 0.5% in September, with the annual inflation rate at 3.6%.
- Core PCE, excluding food and energy, rose 0.3% monthly and 3.1% annually.
- Consumer spending climbed 0.5% in September, and personal income rose 0.2%.
- The Federal Reserve held its benchmark interest rate at 3.75%-4% and is evaluating incoming economic data.
- Initial jobless claims fell to 194,000 for the week ended October 24, near multi-decade lows.
- Economic growth was boosted by AI build-out, consumer spending, and government spending.
- Gross private domestic investment surged by 19.4% in the third quarter, driven by equipment spending.
- Quarterly PCE prices saw an increase of 2.1% (headline) and 2.5% (core), down from the second quarter.
- September's price increases were significantly influenced by a 9.2% rise in gasoline and other energy costs.