Growth in the world's largest economy has been measured at 2.8 percent in the third quarter. The figure is adjusted for seasonal and inflation effects.
Exports decreased slightly and the housing market is pointing downward in the high interest rate environment.
"The economy is doing really well"
But the American economy gets a boost from domestic consumption, which increased by 3.7 percent in the third quarter, the highest consumption increase since the beginning of 2023.
The economy is doing really well, says Torsten Slok, chief economist at asset manager Apollo Global Management, according to The Wall Street Journal.
He adds that growth is stimulated by large investments in artificial intelligence (AI) and the Biden administration's large investments under the Inflation Reduction Act (IRA), which supports investments in green transition in the USA.
The underlying inflation in the USA has simultaneously been measured at 2.2 percent, only marginally higher than the USA's central bank Federal Reserve's inflation target.
On Friday, the federal job statistics for October will be released. It is expected to fall significantly, as a result of a prolonged strike at aircraft manufacturer Boeing and severe weather that has hit parts of the country recently.
Fed expected to lower interest rate
Prior to Friday's figures, payroll administrator ADP reported on Wednesday an increase in employment in the private sector by 233,000 jobs in October, while an earlier calculation of the September figure was adjusted upward.
Wage growth fell to the lowest level since 2021, according to ADP.
The statistics should not deter the Fed from continuing to lower the interest rate at upcoming meetings, including the meeting next week, report American media such as Bloomberg and The Wall Street Journal.
The growth of 2.8 percent in the third quarter was slightly lower than expected. And growth is expected to slow down going forward – including due to the aftermath of severe weather – and fall to around 1.7 percent in the fourth quarter this year and the first quarter of 2025.
